What Are the Five Generally Accepted Credit Events That Can

question 26

Short Answer

What are the five generally accepted credit events that can trigger a payment from the seller of a credit default swap to the buyer?

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating efficiency in sales and inventory management.

Compute

To calculate or process using a computer or mathematical operations.

Just-In-Time Manufacturing

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs, producing goods only as needed.

Days' Sales

A financial metric that calculates the average time it takes for a company to turn its accounts receivable into cash.