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

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