Credit event - Financial definition
Concise definition of the term credit event
A credit events occurs, when the debtor can no longer meet the creditor‘s claims arising from a loan granted.
Comprehensive definition of the term credit event
The following events can constitute a credit event either in isolation or in combination: bankruptcy, obligation default, potential obligation acceleration, obligation acceleration, obligation repudiation/moratorium and restructuring according to the International Swaps and Derivatives Association.
Credit derivative documentation will refer to specific credit events which, should they occur, will set off contingent payments.