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| | A credit break is a break clause in a derivatives contract which provides for the release of one or both of the parties from further obligations under the contract, following a deterioration in the creditworthiness of one of the parties. |
| A marketable longer-term debt instrument usually administered by a trustee. Bonds typically require the issuer to repay the amount borrowed plus interest over a designated period of time. The current market yield on the bond is both the market rate of return to the debt investor and the pre-tax market cost to the issuer of debt capital. | |
| Issuers of bonds include a wide range of corporate and public sector entities, including central governments.
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| A guarantee provided by one party to another as part of a contract.
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| An amount of money provided as security for a guarantee.
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| An instrument issued by a bank or an insurance company, in favour of a buyer, on behalf of a supplier, as additional assurance to the buyer that the supplier will perform its obligations under the supply contract.
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| Such a bank bond or insurance company bond will be supported by an indemnity issued by the supplier in favour of the bank or insurance company.
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| == See also == | | == See also == |
| * [[Agent bank]] | | * [[Break clause]] |
| * [[Bearer bond ]] | | * [[Credit]] |
| * [[Bond futures]] | | * [[Creditworthiness]] |
| * [[Bond issue]] | | * [[Derivative instrument]] |
| * [[Bond mandate]] | | * [[Mutual break]] |
| * [[Bulldog bond]]
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| * [[Callable bond]]
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| * [[Catastrophe bond]]
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| * [[Clean price]]
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| * [[CMO]]
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| * [[Convertible bonds]]
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| * [[Corporate bond]]
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| * [[Coupon bond]]
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| * [[Dirty price]]
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| * [[Drop-lock bond]]
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| * [[Eurobond]]
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| * [[Exchangeable bond]]
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| * [[Floating rate note]]
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| * [[Foreign bond]]
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| * [[Gilts]]
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| * [[Government paper]]
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| * [[Guarantee]]
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| * [[Investment-grade bond]]
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| * [[Obligation]]
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| * [[Par bond]]
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| * [[Par yield]]
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| * [[Paying agent]]
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| * [[Performance bond]]
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| * [[Redeemable bond]]
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| * [[Security]]
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| * [[Shallow discount bond]]
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| * [[Short term]]
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| * [[Straight bond]]
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| * [[Yield to maturity]]
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| | [[Category:Manage_risks]] |
| | [[Category:Risk_frameworks]] |
| | [[Category:Treasury_operations_infrastructure]] |
Latest revision as of 11:57, 6 July 2022
A credit break is a break clause in a derivatives contract which provides for the release of one or both of the parties from further obligations under the contract, following a deterioration in the creditworthiness of one of the parties.
See also