Credit Enhancement
Credit enhancement improves the credit profile of a loan or security through support such as guarantees, overcollateralization, subordination, or insurance.
Loan Credit Protection and Derivatives terms for debt instruments, covenants, ratios, credit derivatives, restructuring, collections, servicing, and recovery.
Loan Credit Protection and Derivatives terms explain debt instruments, borrower-creditor obligations, market issuance, covenants, ratios, credit protection, servicing, distress, restructuring, and recovery.
Use this branch when a debt instrument, covenant, ratio, issuance structure, legal process, credit derivative, servicing duty, or restructuring changes credit analysis.
| Term | Use it for |
|---|---|
| Credit Enhancement | Debt instrument, credit-market, covenant, debt ratio, collection, servicing, credit-protection, distress, restructuring, or recovery term. |
| Loan Credit Default Swap (LCDS) | Debt instrument, credit-market, covenant, debt ratio, collection, servicing, credit-protection, distress, restructuring, or recovery term. |
| Loan Credit Default Swap Index (Markit LCDX) | Debt instrument, credit-market, covenant, debt ratio, collection, servicing, credit-protection, distress, restructuring, or recovery term. |
Check the debt document, obligor, principal amount, maturity, coupon or rate, covenant language, seniority, collateral, market price, servicing status, legal process, and restructuring terms.
Debt-market and restructuring outcomes depend on contracts, law, issuer facts, and market conditions; this page is educational.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Credit enhancement improves the credit profile of a loan or security through support such as guarantees, overcollateralization, subordination, or insurance.
A loan credit default swap transfers credit risk on a loan or loan index, letting investors hedge or trade loan-market default exposure.
The Loan Credit Default Swap Index (Markit LCDX) is an index-based derivative linked to the credit risk of a basket of leveraged loans.