Credit support

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

• Bond
• Collateral
• Credit
• Credit enhancement
• Credit risk
• Credit support annex
• Derivative instrument
• Derivatives documentation
• Encumbrance
• Guarantee
• ISDA Master Agreement
• Margin
• Security
• Trade finance