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What is Credit Risk MitigationTechniques to reduce the credit risks to which a financial institution is exposed. Exposures may be collateralised, they may be guaranteed by a third party, or an institution may purchase a credit derivative to offset various forms of credit risk. Additionally they may agree to net loans owed to them against deposits from the same counterparty.
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Term created / updated 2007-05-15 13:16:09
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