Definition of Credit event:
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.
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?
- 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