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Credit derivative product company (credit DPC or CDPC)

A company that sells protection on credit derivatives based on a triple A credit rating, and whose triple A rating is based on models for capital allocation agreed with the rating agencies. Credit DPCs are similar in concept to monoline financial guarantee companies (see monoline insurers). However, unlike monolines, they are not regulated as insurers and take on risk in the form of derivative contracts rather than insurance policies.