Synthetic Security definition

Synthetic Security. A security or swap transaction, other than a Participation Interest, that has payments associated with either payments of interest on and/or principal of a reference obligation or the credit performance of a reference obligation.

Synthetic Security means any Euro (which, for the avoidance of doubt, includes securities denominated in a legacy currency of those EU Member States which have adopted the Euro as their currency) denominated swap transaction, debt security, security issued by a trust or similar vehicle or other investment purchased from or entered into by the Issuer with a Synthetic Counterparty that satisfies, save to the extent otherwise agreed by the Rating Agencies, the Eligibility Criteria save for that relating to the jurisdiction of the Obligor thereunder, the returns on which (as determined by the Investment Manager) are linked to the credit and/or price performance of a Reference Obligation but which may provide for a different maturity, payment dates, interest rate, credit exposure or other non-credit related characteristics than such Reference Obligation; provided that:

Synthetic Security means any Dollar denominated swap transaction, LCDX, structured bond investment, credit linked note or other derivative investment purchased from, or entered into with a counterparty, which investment contains a probability of default, recovery upon default and expected loss characteristics closely correlated to a reference obligation, but which may provide for a different maturity, interest rate or other non-credit characteristics than such reference obligation.

Examples of Synthetic Security in a sentence

• However, as a result of the terms of the Synthetic Security and the assumption of the credit risk of the applicable Synthetic Counterparty, a Synthetic Security may have a different expected return, a different (and potentially greater) probability of default, a different (and potentially greater) expected loss characteristic following a default and a different (and potentially lower) expected recovery following default.

• A Synthetic Security shall constitute a Credit Impaired Obligation in the event that the Reference Obligation to which such Collateral Debt Obligation is linked would constitute a Credit Impaired Obligation if it were itself a Collateral Debt Obligation.

• For the purposes of the Portfolio Management Agreement, the purchase price of any Portfolio Asset that is a Synthetic Security shall include the principal amount of any Synthetic Collateral required to be posted.

• As part of the acquisition or entry into of a Synthetic Security which is an unfunded credit default transaction, the Issuer or the Portfolio Manager, acting on the Issuer's behalf, will be required to provide collateral to the applicable counterparty (“Synthetic Collateral”) the principal amount of which is not less than 100 per cent.

• As referred to above, a Synthetic Security which is a Defaulted Obligation will generally be settled either by a cash settlement or a physical settlement.

More Definitions of Synthetic Security

Synthetic Security. Any U.S. Dollar denominated swap transaction (including any default swap), LCDX, structured bond investment, credit linked note or other derivative investment, which investment contains a probability of default, recovery upon default and expected loss characteristics closely correlated to a reference obligation, but which may provide for a different maturity, interest rate or other non credit characteristics than such reference obligation.

Synthetic Security means any Dollar-denominated swap transaction (including any default swap), LCDX, structured bond investment, credit linked note or other derivative investment, which investment contains a probability of default, recovery upon default and expected loss characteristics closely correlated to a reference obligation, but which may provide for a different maturity, interest rate or other non-credit characteristics than such reference obligation.

Synthetic Security. A security or swap transaction, other than a Participation Interest, that has payments associated with either payments of interest on and/or principal of a reference obligation or the credit performance of a reference obligation. Tax: Any tax, levy, impost, duty, deduction, withholding (including backup withholding), charge, assessment or fee of any nature (including interest, penalties and additions thereto) imposed by any governmental taxing authority.

Synthetic Security means either a Synthetic Purchase Contract or a credit-linked note in respect of which each supporting credit default swap is a Form-Approved Swap or is in a form which has been the subject of a Rating Agency Confirmation.

Synthetic Security means any swap transaction, debt security, security issued by a trust or similar vehicle or other investment purchased from or entered into by the Issuer that satisfies the Eligibility Criteria with a Synthetic Counterparty, the returns on which (as determined by the Investment Manager) are linked to the credit and/or price performance of a Reference Obligation but which may provide for a different maturity, payment dates, interest rate, credit exposure or other non-credit related characteristics than such Reference Obligation; provided that:

Synthetic Security means a security or swap transaction (other than a letter of credit or a Participation) that has payments of interest or principal on a reference obligation or the credit performance of a reference obligation.

Synthetic Security. Any derivative financial instrument with respect to a reference obligation entered into with a counterparty, whether in the form of a swap transaction, structured bond investment or otherwise.