Glossary entry (derived from question below)
English term or phrase:
credit enhancement
Romanian translation:
garantii suplimentare
Added to glossary by
Iulia Matei
May 25, 2004 18:44
19 yrs ago
10 viewers *
English term
credit enhancement
English to Romanian
Bus/Financial
Finance (general)
A credit enhancement is a contractual arrangement in which the bank retains or
assumes a securitisation exposure and, in substance, provides some degree of added
protection to other parties to the transaction.
assumes a securitisation exposure and, in substance, provides some degree of added
protection to other parties to the transaction.
Proposed translations
(Romanian)
4 +2 | garantii suplimentare | Iulia Matei |
Proposed translations
+2
12 mins
Selected
garantii suplimentare
Credit enhancement encompasses a variety of provisions that may be used to reduce the credit risk of an obligation. Credit enhancements are often incorporated into OTC derivatives, corporate debt, securitized debt and other instruments. Techniques of credit enhancement include:
collateralization: One or more parties may agree to post collateral. Collateral levels may be fixed or vary over time to reflect the market value of the deal.
third party loan guarantees: A parent company or other third party may be contractually bound to meet the obligations of one party should that party default.
credit insurance: An insurance policy may provide for compensation in the event that a party defaults.
letters of credit: A bank may confirm financing.
special purpose vehicle: One party may enter into the deal through its own over capitalized, bankruptcy remote subsidiary.
collateralization: One or more parties may agree to post collateral. Collateral levels may be fixed or vary over time to reflect the market value of the deal.
third party loan guarantees: A parent company or other third party may be contractually bound to meet the obligations of one party should that party default.
credit insurance: An insurance policy may provide for compensation in the event that a party defaults.
letters of credit: A bank may confirm financing.
special purpose vehicle: One party may enter into the deal through its own over capitalized, bankruptcy remote subsidiary.
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