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wiedereindeckung

English translation: replacement risk

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:wiedereindeckungsrisiko
English translation:replacement risk
Entered by: Rod Darby
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05:02 Aug 10, 2006
German to English translations [PRO]
Bus/Financial - Finance (general) / risk management
German term or phrase: wiedereindeckung
Dies [das Kontrahentenrisiko] inkludiert das klassische Kreditrisiko (Ausleihungen an Kunden, Garantien für Kunden), Emittentenrisiken (Forderungswertpapiere), sowie das Wiedereindeckungsrisiko (Derivate).
Rod Darby
Ghana
Local time: 04:26
replacement
Explanation:
replacement risk

Since no one has answered yet, I looked in Zahn, which has this to say: replacement risk, risk that a financial contract, e.g., a swap contract, must be replaced in the open market at a high cost

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Note added at 4 hrs (2006-08-10 09:05:29 GMT)
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Here's an example from clearnet

http://www.clearnetsa.com/management/types_risks.asp


Credit risk is the risk of loss arising from the default of a counterparty, typically as a consequence of its insolvency. This risk can be split into two components:
- settlement risk, which is the risk linked to a counterparty defaulting where cash has been paid before delivery of securities or vice versa.
- replacement risk, that is the risk that a non-defaulting counterparty will incur a loss in replacing a trade not delivered following a default.



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Note added at 4 hrs (2006-08-10 09:09:51 GMT)
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This example has a different context, so I'll just stop.
Selected response from:

Terry Gilman
Germany
Local time: 06:26
Grading comment
wicked stuff, Terry! great help - great to hear from you - contact you when this horror is finished!
4 KudoZ points were awarded for this answer

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Summary of answers provided
3 +1replacement
Terry Gilman


  

Answers


1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
replacement


Explanation:
replacement risk

Since no one has answered yet, I looked in Zahn, which has this to say: replacement risk, risk that a financial contract, e.g., a swap contract, must be replaced in the open market at a high cost

--------------------------------------------------
Note added at 4 hrs (2006-08-10 09:05:29 GMT)
--------------------------------------------------

Here's an example from clearnet

http://www.clearnetsa.com/management/types_risks.asp


Credit risk is the risk of loss arising from the default of a counterparty, typically as a consequence of its insolvency. This risk can be split into two components:
- settlement risk, which is the risk linked to a counterparty defaulting where cash has been paid before delivery of securities or vice versa.
- replacement risk, that is the risk that a non-defaulting counterparty will incur a loss in replacing a trade not delivered following a default.



--------------------------------------------------
Note added at 4 hrs (2006-08-10 09:09:51 GMT)
--------------------------------------------------

This example has a different context, so I'll just stop.

Terry Gilman
Germany
Local time: 06:26
Does not meet criteria
Native speaker of: Native in EnglishEnglish
PRO pts in category: 12
Grading comment
wicked stuff, Terry! great help - great to hear from you - contact you when this horror is finished!

Peer comments on this answer (and responses from the answerer)
agree  Kieran McCann
2 hrs
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