RISK MANAGEMENT AND RISK TRANSFER CONDUIT SYSTEM

摘要

A method for managing, on a pooled basis, the credit risk coverage of contract performance by contracting parties [figure 6]. An aggregate maximum credit risk coverage for all contracts by each contracting party is established. A credit risk coverage limit is also defined for each of the pools. The invention is suited to use with products and services which are illiquid of difficult to inventory, such as electrical power, forestry products, and chemical products.