reference entity

reference entity
USA
A corporate, sovereign or any other form of legal entity (or a basket or index of such entities) specified in a trade confirmation relating to a derivatives transaction. The obligations of the parties to the swap are determined by events relating to the reference entity. In the case of credit derivatives, these events are called credit events.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • Reference Entity — One of the underlying parties involved in a credit derivative contract. The reference entity bears the credit risk of the contract, and can be a corporation, government or other legal entity that issues debt of any kind. If a credit event such as …   Investment dictionary

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