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Helping you Manage your Risk
National Bank Financial’s Credit Derivatives Group specializes in developing products to help our corporate clients manage their credit risk.
Credit derivatives are contracts that allow one party to transfer the credit risk and return related to a given asset to another party, without actually transferring the underlying asset. Compared to the markets for other derivative products, the global market for credit derivatives is relatively small, but it is growing rapidly.
Credit derivatives are particularly interesting vehicles for managing the growing credit risks associated with world financial markets. Such contracts derive from an original contract or asset, transacted between an issuer and a guarantor, but are negotiated separately from the underlying asset. This makes them ideal for lenders who may wish to reduce their exposure to a particular borrower, without actually giving up the loan or obligation.
National Bank Financial is a key player on the Canadian credit derivatives market and its leadership in the field grows daily, to the benefit of our institutional and corporate clients.
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