An over-the-counter, ‘off balance sheet’ instrument, derived directly or indirectly from the price of a credit instrument. They take numerous forms, including swaps (e.g. credit default swaps and options), and are used to transfer the credit risk from one party to another, e.g. banks to insurance companies (insuritisation). The amount of credit derivatives transferred to insurers rose from zero in 1998 to 30 per cent in 2002 (www. vinodkothari.com/glossary).