Template:M summ Credit Derivatives 1.3: Difference between revisions

[[Buyer - Credit Derivatives Provision|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.

“{{cddprov|Buyer}}” is a useful label in itself. It doesn’t really ''need'' defining. We surmise that this “{{cddprov|Buyer}}” must be the person ''buying'' credit protection. Right? And so it is.

Now it is also true that the {{cddprov|Buyer}} also happens to be the {{cddprov|Fixed Rate Payer}}, in that it pays a pre-agreed, fixed premium  — sorry, sorry, “{{cddprov|Fixed Amount}}” — for the credit protection it buys — but that takes us one step further removed from what is going on. We will need to travel as far as Section {{cddprov|12.6}} of the {{cddefs}} to find out what the “{{cddprov|Fixed Rate Payer}}” even means. Don’t hold your breath: it is simply the party specified as such in the {{cddprov|Confirmation}}.