credit-linked note

English

Noun

credit-linked note (plural credit-linked notes)

  1. (finance) A form of funded credit derivative, structured as a security with an embedded credit default swap allowing the issuer to transfer a specific credit risk to credit investors. The issuer is not obligated to repay the debt if a specified event occurs, which eliminates a third-party insurance provider.
    Synonyms: minibond, (initialism) CLN
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