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Template:M summ Credit Derivatives 1.3

Revision as of 12:47, 9 May 2023 by Amwelladmin (talk | contribs) (Created page with "It is deliciously elliptical, and classic carry-on from {{icds}} to define a term in a way that is not only itself an embedded definition, but also one that categorically tells you less about the term than the original definier. Buyer is a useful label. From it we surmise that this must be the person buying credit protection. Right? And so it is. True, the Buyer also happens to be the Fixed Rate Payer, in that it pays a pre-agreed, fixed premium for the credit pro...")
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It is deliciously elliptical, and classic carry-on from ISDA’s crack drafting squad™ to define a term in a way that is not only itself an embedded definition, but also one that categorically tells you less about the term than the original definier.

Buyer is a useful label. From it we surmise that this must be the person buying credit protection. Right? And so it is.

True, the Buyer also happens to be the Fixed Rate Payer, in that it pays a pre-agreed, fixed premium for the credit protection it buys — but that takes us one step further removed from what is going on.

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