Reference Asset

Business, Legal & Accounting Glossary

  1. Home
  2. Glossary
  3. Define: Reference Asset

Definition: Reference Asset

Reference Asset
Cite Term
Sources

Full Definition of Reference Asset

Underlying asset that protects a debt holder from the risk that a borrower will default on the debt. To protect themselves from the risk of default, debt holders may purchase credit derivatives, which transfer this risk to a third party. If the borrower defaults on the debt, the debt holder may then be entitled to receive all or part of the par value of the original debt, which is called the reference asset.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/reference-asset/
Modern Language Association (MLA):
Reference Asset. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
February 03, 2025 https://payrollheaven.com/define/reference-asset/.
Chicago Manual of Style (CMS):
Reference Asset. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/reference-asset/ (accessed: February 03, 2025).
American Psychological Association (APA):
Reference Asset. PayrollHeaven.com. Retrieved February 03, 2025
, from PayrollHeaven.com website: https://payrollheaven.com/define/reference-asset/

Definition Sources

Definitions for Reference Asset are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 16th November, 2021 | 0 Views.