Credit support: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Expand 2nd definition.) |
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2. ''Credit risk management''. | 2. ''Credit risk management''. | ||
Any form of credit risk reduction. | Any form of credit risk reduction, for example in the context of bonds and guarantees supporting trade finance. | ||
Also known as ''credit enhancement''. | Also known as ''credit enhancement''. | ||
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* [[Margin]] | * [[Margin]] | ||
* [[Security]] | * [[Security]] | ||
* [[Trade finance]] | |||
* [[Tranche]] | * [[Tranche]] | ||
Revision as of 11:01, 4 April 2021
1. Credit risk - derivative instruments.
In the context of derivative financial instruments, credit support is reducing counterparty credit risk.
Usually by requiring collateral - also known as margin - to be posted by the counterparties.
2. Credit risk management.
Any form of credit risk reduction, for example in the context of bonds and guarantees supporting trade finance.
Also known as credit enhancement.
