credit risk Current Affairs, GK & News

Credit Risk

The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter. Credit risk includes pre-settlement risk (replacement cost risk) and settlement risk (Principal risk).

What is Credit Default Swap?

The Reserve Bank of India revealed the credit default swaps (CDS) and has allowed the retail users to do the transactions in permitted credit derivatives in order to hedge their underlying credit risk. Key Highlights As per the guidelines, the non-retail users will be allowed to do the transactions in credit derivatives for the purpose ..