Attachment Point

This Issue in United States

Attachment Point

Concept of Attachment Point in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A defined point at which the level of losses in the underlying portfolio reduces the notional of a tranche. For example, the notional in a tranche with an attachment point of 3% will reduce after 3% of losses in the portfolio have occurred.

Resources

See Also

• Derivatives Contract