en     ru     jp
 
 
private banking
private banking
private banking
private banking
private banking
private banking
private banking
     
 
Home
      
Knowledge Base
      
Equity Derivatives and Structured Products Glossary
      
Two-name exposure
       
 
Back

Two-name exposure

 Search definitions     
  Search  

Two-name exposure
Credit exposure that the protection buyer has to the protection seller, which is contingent on the performance of the reference credit. If the protection seller defaults, the buyer must find alternative protection and Will be exposed to changes in Replacement cost due to changes in credit spreads since the inception of the original Swap. More seriously, if the protection seller defaults and the reference entity defaults, the buyer is unlikely to recover the full Default payment due, although the final recovery rate on the Position Will benefit from any positive recovery rate on obligations of both the reference entity and the protection seller.
Posted by  Privatebanking.com
 
  Back  
  Print  
  Email  

 

private banking
private banking
private banking
private banking
private banking
private banking
private banking

 
Home News Library Newsletters Event Calendar Advertise About Contact FAQ
Privacy Policy     Terms of Service
 

©