Credit Support
/ˈkrɛdɪt səˈpɔːrt/
Definitions
- (n.) Security or collateral provided to protect performance of financial obligations under contracts such as derivatives.
The parties agreed to provide credit support to mitigate counterparty risk in the swap agreement.
Forms
- credit support
Related terms
See also
Commentary
Credit support clauses are crucial in financial contracts to ensure risk mitigation and often specify types of acceptable collateral and conditions for its use.
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