PAUG - What does PAUG stand for? The Free Dictionary
References in periodicals archive
A credit event on a physical settlement swap requires AIG to buy the total underlying CDO tranche in an amount equal to AIG's full notional exposure whereas a PAUG
contract only obliges AIG to pay losses on that tranche as and when they occur therefore reducing the cash impact.
Traditional credit events, as they apply to the PAUG
contract, do not form part of the index contract.