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Credit Equivalent Value (CEV)
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Credit Equivalent Value (CEV)
Monetary value of the
credit risk
exposure represented by an off-balance sheet transaction. CEV is the potential cost at current
market
prices of replacing the contract's expected net cash flows in the
event of default
by the
counterparty
. See also
Credit Line Usage
,
Maximum Potential Replacement Cost
.
Glossary
*
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