Credit Support

Credit support refers to assets or guarantees provided to reduce the risk for lenders or counterparties in financial transactions, such as loans or derivatives. It acts as a financial safety net, ensuring that parties can fulfill their obligations if one side cannot. Typically, this support can take the form of collateral—like cash or securities—or a guarantee from a third party. The goal is to protect against default risk and improve the confidence and stability of the transaction for all involved.