floating or market recovery rate

English to Swedish Bus/Financial Finance (general) financial products

In the case of a floating or market recovery rate, the investor will receive the recovery value for the reference entity which is determined by a predefined ISDA (International Swaps and Derivatives Association) process (auction). The Recovery Value is the final price of a CDS (Credit Default Swap) after a Credit Event has occurred, and is linked to the value of the bond of the reference entity in the market.