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CDPC meaning in Business ? |
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Answer» What is Credit Derivatives Product Company mean? A Credit Derivatives Product Company, or CDPC, is a business focused on trading in credit default swaps contracts. CDPC typically sells insurance against someone failing to pay back a loan ('defaulting'). A CDPC is usually highly leveraged, meaning that if even a portion of its held credit default portfolio were to be 'triggered' at once, the CDPC would not have the capital to fully pay out the resulting insurance claims. The CDPC business model is dependent on a triple-A rating from a credit rating agency and must trade within closely defined limitations to be allowed to maintain their credit rating. reference
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