term obligation reference help what is
Meaning of reference obligation. What is it: triggers the credit event and hence the liquidation of.

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Definition reference obligation

REFERENCE OBLIGATION title: reference obligation (FS-BA-PM-CR) (SAP Library - Glossary)
REFERENCE OBLIGATION category: Credit Risk (FS-BA-PM-CR)
REFERENCE OBLIGATION explained:

The reference asset underlying the credit derivative triggers the credit event and hence the liquidation of the collateral.

The credit event must have already been defined by the contract partners. In addition, the reference asset governs the value of the cash settlement, or is itself the asset that is to be paid.

More terms such as reference obligation in Dictionary R.

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