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Credit derivative product company
A stand alone company specialised in selling credit default protection on highly rated corporate borrowers. CDPCs are rated AAA and in exchange for quaterly premiums, they provide counterparts with an Insurance against the Bankruptcy of issuers through credit default swaps. Contrary to hedge funds they have a policy of keeping credit default swaps till Maturity and are not actively involved in trading them.
Credit derivative product company
A stand alone company specialised in selling credit default protection on highly rated corporate borrowers. CDPCs are rated AAA and in exchange for quaterly premiums, they provide counterparts with an Insurance against the Bankruptcy of issuers through credit default swaps. Contrary to hedge funds they have a policy of keeping credit default swaps till Maturity and are not actively involved in trading them.
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