2022-10-11 Meeting notes
- Elisa Kendall
Date
Attendees
Agenda
1) Use Case reminder
2) Where we are on our road map.
3) Open Action Items
4) JIRA Issues Review - https://jira.edmcouncil.org/projects/DER/issues/DER-10?filter=allopenissues
5) Todays content discussion.
6) For next week.
Proceedings:
Today we started to work on the credit default swap ontology.
The difference between a CDS and insurance policy: The protection buyer of a CDS is eligible to obtain the compensation without suffering any loss (and potentially realizing a gain) whereas insurance policies only pay out to compensate a loss (and not potentially realizing a gain).
Definition of credit derivative: A credit derivative is a financial contract that allows parties to minimize their exposure to credit risk. Credit derivatives consist of a privately held, negotiable bilateral contract traded over-the-counter (OTC) between two parties in a creditor/debtor relationship. These allow the creditor to effectively transfer some or all of the risk of a debtor defaulting to a third party. This third party accepts the risk in return for payment, known as the premium.
Several types of credit derivatives exist, including: Credit default swaps (CDS) Collateralized debt obligations (CDO) Total return swaps Credit spread options/forwards
We agreed to move credit derivative to derivatives basics, and to make total return swap a subclass of credit derivative. Elisa will make the change and then push the results out to GitHub via WIP so that we can continue the work on Friday.