With respect to credit derivatives (e.g., credit default swaps, CDSs), it is an underlying asset for which a debt holder is protected against the credit risks associated with a borrower. Examples of reference assets include bonds, notes, or broadly fixed-income securities, and debt-backed security. Payments against such assets are calculated under a credit derivative contract.

A reference asset is also known as a reference entity, a reference obligation, or a covered obligation.

In a broader financial context, a reference asset is usually a sovereign or highly-rated debt instrument or an equity index price that is used to provide a basis for a contingent payment in connection with a market risk or credit risk.