Covered bond and Derivative instrument: Difference between pages

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imported>Doug Williamson
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Covered bonds are debt instruments secured by a 'cover pool' of mortgage loans (collateral) or public-sector debt to which investors in the covered bonds have a preferential claim, in the event of default.  
A derivative instrument or contract is one whose value and other characteristics are derived from those of another asset or instrument (sometimes known as the Underlying Asset).


Covered bonds have become a widely used funding instrument for financial institutions.
Derivative instruments are widely used by non-financial corporates for hedging purposes.
 
 
<span style="color:#4B0082">'''Example'''</span>
 
A share option is a type of derivative contract, allowing the holder to buy shares at a certain predetermined strike price.
 
The value of the share option derives from the current price of the related underlying share relative to the option strike price.




== See also ==
== See also ==
* [[Bond]]
* [[CCR]]
* [[Collateral]]
* [[Collateral]]
* [[Level 1B liquid assets]]
* [[Commodity risk]]
* [[Monetisation]]
* [[CP]]
* [[Mortgage]]
* [[Credit support annex]]
* [[PSE]]
* [[Embedded derivative]]
* [[Securitisation]]
* [[ETD]]
 
* [[FC]]
 
* [[Fixing instrument]]
* [[FVTOCI]]
* [[FVTPL]]
* [[Hedge fund]]
* [[Hedging]]
* [[IR]]
* [[ISDA Master Agreement]]
* [[Maturity]]
* [[Notional principal]]
* [[Option]]
* [[Outright]]
* [[Potential Future Exposure]]
* [[Replacement cost]]
* [[Strike price]]
* [[Tracker fund]]
* [[Transfer]]
* [[Underlying]]
* [[Underlying asset]]
* [[Underlying price]]
* [[XVA]]


=== Other links ===


[https://hypo.org/ecbc/covered-bonds/ Covered bonds, European Covered Bond Council]
===Other links===
*[http://www.treasurers.org/node/8599  Masterclass: Derivatives, The Treasurer, December 2012]


[[Category:The_business_context]]
[[Category:Risk_frameworks]]
[[Category:Financial_products_and_markets]]

Revision as of 15:33, 8 March 2017

A derivative instrument or contract is one whose value and other characteristics are derived from those of another asset or instrument (sometimes known as the Underlying Asset).

Derivative instruments are widely used by non-financial corporates for hedging purposes.


Example

A share option is a type of derivative contract, allowing the holder to buy shares at a certain predetermined strike price.

The value of the share option derives from the current price of the related underlying share relative to the option strike price.


See also


Other links

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