Derivative (finance) — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
Constant proportion portfolio insurance — (CPPI) is a capital guarantee derivative security that embeds a dynamic trading strategy in order to provide participation to the performance of a certain underlying asset. See also dynamic asset allocation. The intuition behind CPPI was adopted… … Wikipedia
Credit derivative — In finance, a credit derivative is a securitized derivative whose value is derived from the credit risk on an underlying bond, loan or any other financial asset. In this way, the credit risk is on an entity other than the counterparties to the… … Wikipedia
Directors and officers liability insurance — (often called D O) is liability insurance payable to the directors and officers of a company, or to the organization(s) itself, to cover damages or defense costs in the event they suffer such losses as a result of a lawsuit for alleged wrongful… … Wikipedia
Equity Derivative — A derivative instrument with underlying assets based on equity securities. An equity derivative s value will fluctuate with changes in its underlying asset s equity, which is usually measured by share price. Investors can use equity derivatives… … Investment dictionary
Weather Derivative — An instrument used by companies to hedge against the risk of weather related losses. The investor who sells a weather derivative agrees to bear this risk for a premium. If nothing happens, the investor makes a profit. However, if the weather… … Investment dictionary
credit derivative — Contractual arrangements that allow one party to transfer credit risk of a reference asset, which it may or may not own, to one or more counterparties. The first party may be called the protection buyer , the beneficiary or the originator . The… … Financial and business terms
Credit Default Insurance — The use of a financial agreement usually a credit derivative such as a credit default swap, total return swap, or credit linked note to mitigate the risk of loss from default by a borrower or bond issuer. Credit default insurance allows for the… … Investment dictionary
embedded derivative instrument — Defined by FASB in FAS 133. An implicit or explicit term in a contract such as a bond, insurance policy, or lease, that meets the definition of a derivative even though the entire contract may not. Under FAS 133, the certain embedded derivatives… … Financial and business terms
Credit Derivatives — Derivative instruments created to separate the credit risk of a borrower from overall market risk. A purchaser of a bond buys a credit derivative to cover the risk of the bond s debtor defaulting. Effectively the seller or writer of the credit … Financial and business terms
