Credit Support

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Definition

Credit Support is a general term used to denote any mechanism that provides Credit Risk Mitigation (reduction of Credit Risk. Depending on the context it may denote:

Collateral agreements in the context of Credit Support Annex in derivatives transactions
Credit Enhancement obtained through Subordination or other means in Securitisation transactions
A Financial Guarantee or other similar tool in the context of Creditworthiness assessment e.g. by a Credit Rating Agency