Definition of credit event in English:

credit event

noun

Finance
  • A default, bankruptcy, or other situation which is recognized as affecting the creditworthiness of a country or organization and which may trigger insurance payments as defined in a credit default swap.

    ‘investors should keep in mind that this is a relatively small credit event relative to some of those we've seen in the banking sector before’
    • ‘Italy needs to focus on structural reforms since a credit event in the country is a key danger.’
    • ‘To the extent that there are unexpected levels of downgrades, we may not need to see any loss for there to be some sort of credit event.’
    • ‘The implosion of the TMT sector in 2000 and that sector's continued weakness raise the concern that further equity price corrections could cascade across markets and thereby trigger liquidity and/or credit events.’
    • ‘Spanish five-year government bond yields rose in line with 10-year bonds on Tuesday in a sign that markets were preparing for the risk of a big credit event.’
    • ‘Returns on the bonds will also diminish if any of the 100 firms suffer a credit event - defined by StanChart as bankruptcy, failure to pay debts or a serious restructuring - during the 10-year period.’