TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

OPTION VARIATION CREDIT [1 record]

Record 1 2004-04-28

English

Subject field(s)
  • Investment
  • Currency and Foreign Exchange
DEF

Option contract that gives the right to receive a cash payment if a spread, i.e, the difference in yields between two financial assets, widens beyond an agreed strike level during a specific period.

CONT

Credit-spread put option contracts isolate and capture devaluations in a reference asset that are independent of shifts in the general yield curve. Essentially, they are default swaps that stipulate spread widening as an "event".

Key term(s)
  • credit spread put option

French

Domaine(s)
  • Investissements et placements
  • Politique monétaire et marché des changes
DEF

Option sur différentiel, ayant pour sous-jacent l'écart entre les taux d'intérêt de deux émissions d'obligations d'échéance similaire, mais dont les notations diffèrent.

CONT

L'option de vente sur écart de crédit offre une protection contre une dévalorisation de l'actif de référence qui n'est pas liée à l'évolution de la courbe des taux d'intérêt. Il s'agit au fond d'un swap sur défaillance dans lequel l'incident de crédit est l'élargissement de l'écart de crédit.

Key term(s)
  • option sur variation du crédit

Spanish

Save record 1

Copyright notice for the TERMIUM Plus® data bank

© Public Services and Procurement Canada, 2024
TERMIUM Plus®, the Government of Canada's terminology and linguistic data bank
A product of the Translation Bureau

Features

Language Portal of Canada

Access a collection of Canadian resources on all aspects of English and French, including quizzes.

Writing tools

The Language Portal’s writing tools have a new look! Easy to consult, they give you access to a wealth of information that will help you write better in English and French.

Glossaries and vocabularies

Access Translation Bureau glossaries and vocabularies.

Date Modified: