credit default swap

(redirected from Credit Default Swaps)
Also found in: Financial.

credit default swap

n
finance a contract in which the parties exchange the exposure to loss should a creditor fail to make a payment when it comes due back . Abbreviation: CDS
Mentioned in ?
References in periodicals archive ?
17) Credit default swaps played an integral role in the system-wide collapse of the financial markets, (18) as they tied the fate of large amounts of capital to shaky debt instruments and intertwined the risks of massive financial institutions.
Vietnam's credit default swaps (CDS) hit their widest in 11 months on concerns about the country's balance of payments after the IMF warned foreign reserves covered only seven weeks of imports.
California's treasurer has asked six banks that underwrite municipal bonds for more details of credit default swaps.
The idea was that credit default swaps would reduce the risk to any investor who bought bonds.
This will enable the building society to carry out credit default swaps, default digital swaps, options on credit default swaps, cancellable credit default swaps and nth-to-default basket swaps, according to Principia.
UK-based Barclays Plc (LSE: BARC) has become the third biggest dealer of credit default swaps.