Credit Support
From Open Risk Manual
Revision as of 11:34, 22 February 2021 by Wiki admin (talk | contribs)
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
