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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.

Decisions:

Action items

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