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A credit forward is a forward agreement that O hedges against a decrease in default risk on a loan before the loan rate is determined

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A credit forward is a forward agreement that O hedges against a decrease in default risk on a loan before the loan rate is determined and the loan issued. O hedges against an increase in default risk on a loan before the loan rate is determined and the loan issued. O hedges against a decrease in default risk on a loan after the loan rate is determined and the loan issued. O hedges against an increase in default risk on a loan after the loan rate is determined and the loan issued. O hedges against an increase in default risk on a loan after the loan rate is determined and before the loan is issued

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