Credit support: Difference between revisions

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imported>Doug Williamson
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1. ''Credit risk - derivative instruments''.
1. ''Credit risk - derivative instruments''.


In the context of derivative financial instruments, credit support is reducing counterparty credit risk.
In the context of derivative financial instruments, credit support reduces counterparty credit risk.


Usually by requiring collateral - also known as margin - to be posted by the counterparties.
Usually by requiring collateral - also known as margin - to be posted by the counterparties.
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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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== See also ==
== See also ==
* [[Bond]]
* [[Collateral]]
* [[Collateral]]
* [[Credit]]
* [[Credit]]
* [[Credit enhancement]]
* [[Credit risk]]
* [[Credit risk]]
* [[Credit support annex]]
* [[Credit support annex]]
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* [[Derivatives documentation]]
* [[Derivatives documentation]]
* [[Encumbrance]]
* [[Encumbrance]]
* [[Guarantee]]
* [[ISDA Master Agreement]]
* [[ISDA Master Agreement]]
* [[Margin]]
* [[Margin]]
* [[Security]]
* [[Security]]
* [[Tranche]]
* [[Trade finance]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]

Latest revision as of 12:54, 8 April 2021

1. Credit risk - derivative instruments.

In the context of derivative financial instruments, credit support reduces 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.


See also