Capital Markets
Derivatives
CDS on supply chain obligors (Trafigura, Vitol, Seplat Energy) — the first credit derivatives on commodity trading house credit, enabled by Caviar's proprietary default database.
Key figures
How it works
From default data to tradeable CDS.
Default database built
Caviar aggregates 60 months of oracle-verified default and loss data across supply chain obligors — the first dataset of its kind.
Reference entity published
Each obligor is profiled with default probabilities, recovery rates, and credit migration data derived from actual transaction performance.
CDS contract standardized
ISDA-compliant credit default swap contracts are structured referencing Caviar's proprietary credit data and standardized documentation.
ISDA-compliant settlement
Credit events trigger oracle-verified settlement. Physical or cash settlement with transparent recovery rate determination.
Capabilities
Credit derivatives for supply chain credit.
Proprietary default data
60 months of oracle-verified default, loss, and recovery data across commodity trading houses and supply chain obligors. No comparable dataset exists.
ISDA documentation
Fully compliant ISDA Master Agreement and Credit Derivatives Definitions adapted for supply chain reference entities and oracle-based credit events.
Supply chain CDS
The first credit default swaps referencing commodity trading house and supply chain obligor credit — an entirely new market created by Caviar's data.
Total return swaps
TRS on trade finance indices enabling synthetic exposure to supply chain credit performance without holding underlying receivables.
Basis swaps
Trade the basis between Caviar's oracle-derived credit spreads and traditional bank pricing — arbitrage the information asymmetry.
Credit event oracle
On-chain oracle determines credit events using real-time transaction data. No dealer polls, no ISDA Determinations Committee delays.
Comparison
Traditional vs. Caviar
| Traditional | Caviar | |
|---|---|---|
| Default data | No public dataset for trade finance | 60 months oracle-verified defaults |
| Pricing precision | ±5% dealer estimate | ±0.8% data-driven pricing |
| Reference entities | Only rated corporates | 50+ supply chain obligors |
| Settlement | ISDA committee, weeks to months | Oracle-verified, automated |
Use cases
Real-world applications
Commodity trading house CDS
Buy or sell protection on Trafigura, Vitol, or Gunvor credit. Hedge counterparty exposure or express a view on trading house creditworthiness.
Portfolio hedging
Trade finance fund managers hedge concentrated supply chain exposures using single-name CDS or index tranches derived from Caviar data.
Emerging market supply chain
CDS on Seplat Energy and other EM supply chain obligors. Access credit views on names that have never had tradeable derivatives.
Access supply chain derivatives.
Trade the first credit derivatives on commodity trading house and supply chain credit. Powered by proprietary default data.