Recovery Rate Swap

This Issue in United States

Recovery Rate Swap

Concept of Recovery Rate Swap in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A credit derivative (i.e. an instrument that transfers risk from one party to the other) where the payoff is based on the difference between a preset fixed recovery rate and the recovery rate which is observed at the time of the credit event.

Resources

See Also

• Derivatives Contract