Private Institutional Credit Derivative

Systems and methods are disclosed for providing a credit derivative to protect against the credit risk associated with a private debt on an individual basis. A financial institution lending money to a private entity may desire a credit derivative product that allows the financial institution to prot...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Hauptverfasser: MONAHAN STEPHEN T, ANGRES DANIEL, RUIFROK CHARLES L, MIXON ARRINGTON HEARN, DANZIGER GLEN, MCCLARY COLIN J, RAMANI VIPIN
Format: Patent
Sprache:eng
Schlagworte:
Online-Zugang:Volltext bestellen
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:Systems and methods are disclosed for providing a credit derivative to protect against the credit risk associated with a private debt on an individual basis. A financial institution lending money to a private entity may desire a credit derivative product that allows the financial institution to protect against the risk of default by the private entity. Such a credit derivative product allows the financial institution to bifurcate the cash flow from the privately issued loan into a no-risk portion and a credit risk portion. Once an agreement for a credit derivative product is executed, the information for the derivative product may be recorded and maintained in the institution's bookkeeping system. In some instances, the agreement may include an early termination option for the protection buyer.