Eligible credit derivative definition
Eligible credit derivative means a single-name credit derivative or a standard, non-tranched index credit derivative provided that:
Eligible credit derivative means a single-name credit de- rivative or a standard, nontranched index credit derivative provided that:
Eligible credit derivative means any credit derivative transaction that fulfils the Substitution Criteria described in the Portfolio Substitution Terms and Investment Guidelines set out at Annex 3hereto.
More Definitions of Eligible credit derivative
Eligible credit derivative means a single-name or standard, nontranched index credit derivative, provided that: (1) it is an “eligible guarantee,” confirmed by the parties; (2) any assignment has been confirmed; (3) if a credit default swap, the contract includes the following credit events: (a) failure to pay any amount due under the terms of the reference exposure (subject to any applicable market- standard threshold and a grace period in line with that of the exposure); and (b) bankruptcy, insolvency, inability of the obligor on the reference exposure to pay its debts as they become due, and similar events; (4) the terms governing settlement are incorporated into the contract; (5) if cash settlement is allowed, the contract incorporates a robust valuation process and a reasonable period for valuing the reference exposure; (6) if the purchaser is required to transfer an exposure at settlement, at least one of the eligible exposures is transferable (on no more than reasonable consent); and (7) if a credit default swap, the contract clearly indicates: (a) who determines whether a credit event has occurred; (b) that such determination is not made solely by the protection provider; and (c) gives the purchaser the right to notify the provider of a credit event.