reference asset

Definition of "reference asset"
  1. An underlying asset, like a debt instrument from a corporation or government, that informs a credit derivative
How to use "reference asset" in a sentence
  1. The reference asset of the credit derivative was a sovereign debt instrument.
  2. By understanding the movement of the reference asset, investors can predict the behavior of the credit derivative.
  3. The company decided to use a reliable corporate debt instrument as the reference asset for its credit derivative.

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