Credit event

Credit event,

Definition of Credit event:

  1. A default, bankruptcy, or other situation which is recognized as affecting the creditworthiness of a country or organization and which may trigger insurance payments as defined in a credit default swap.

  2. Pre-determined event (such as a bankruptcy or fall in credit ratings) whose occurrence triggers the settlement of a credit derivative (CD). If it occurs, the buyer of a CD pays its seller the agreed upon sum. If it doesnt, the seller gets nothing.

How to use Credit event in a sentence?

  1. Investors should keep in mind that this is a relatively small credit event relative to some of those weve seen in the banking sector before.

Meaning of Credit event & Credit event Definition