One of the main parties involved in a credit derivative contract who takes responsibility of the credit risk involved in the contract. The reference entity is the seller, a large organization or government agency, who has issued the loan and becomes liable to pay when there is a credit default.
Related information about reference entity:
- Reference Entity Definition | Investopedia
One of the underlying parties involved in a credit derivative contract. The reference entity bears the credit risk of the contract, and can be a corporation, ...
- Credit default swap - Wikipedia, the free encyclopedia
If the reference entity (i.e., Risky Corp) defaults, one of two kinds of settlement ... default"), the buyer loses its protection against default by the reference entity.
- What is reference entity? definition and meaning
Definition of reference entity: One of the main parties involved in a credit ... The reference entity is the seller, a large organization or government agency, who ...
- Markit RED
Markit RED legally verifies CDS reference entity and reference obligation data. Unique alphanumeric RED codes help reduce errors when confirming trades and ...
- Red (reference entity database)
A list of reference entities and reference obligations which has been checked for accuracy (scrubbed) by a law firm (currently...
- Reference entity
The borrower (or other entity) whose default triggers a payout in a credit derivative.
- What Is a Reference Entity?
A reference entity is the subject of a Credit Default Swap (CDS), a financial product used in speculation, arbitrage, and hedging. In a CDS, a seller offers ...
- ISDA: CDS Marketplace :: About CDS :: CDS FAQ
The reference entity is the party on which protection is written. For the simplest ( single-name) form of CDS, the reference entity is an individual corporation or ...