Detachment Point

This Issue in United States

Detachment Point

Concept of Detachment Point in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The detachment point defines the point after the attachment point where losses in the underlying portfolio no longer reduce the notional of a tranche. For example, the notional in a tranche with an attachment point of 3% and a detachment point of 6% will reduce after there has been 3% of losses in the portfolio. The reduction in notional no longer occurs after 6%.

Resources

See Also

• Derivatives Contract