The Jolly Contrarian’s Glossary
The snippy guide to financial services lingo.™
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Essentially a synthetic form of an Event of Default on a specified “reference obligation”, a credit event is the trigger event under a credit derivative, justifying payout under a credit default swap, a form of credit protection insurance[1]

Once upon a time, being a credit derivatives expert was very, very sexy: since the middle of 2007, it has been more of a dark stain, buried deep on your CV, that only comes out late at night when you are deep into the whiskey, the bitter tears flow about how it might have been as an immediate prelude to transgressing the Schwarzschild radius of alcohol consumption, whereupon the pain goes away, everything goes fuzzy and you atomise into the background entropic radiation of the boredom heat-death of the universe.

See also

References

  1. “IT IS NOT INSURANCE FOR CRYING OUT LOUD,” cried Robin Potts Q.C.
    “All right, all right, keep your hair on” the JC replied. “But is it a lot like insurance.”