Contingent Credit Default Swap (CCDS)

AAA

DEFINITION of 'Contingent Credit Default Swap (CCDS)'

A variation on the credit default swap (CDS). In a simple CDS, payment under the swap is triggered by a credit event, such as non-payment of interest. In a contingent credit default swap (CCDS), the trigger requires both a credit event and another specified event.

INVESTOPEDIA EXPLAINS 'Contingent Credit Default Swap (CCDS)'

The second trigger in a CCDS is usually a market or industry variable. A CCDS is generally employed to protect specific exposure when larger industry or market forces have deteriorated.

RELATED TERMS
  1. Amortizing Swap

    An exchange of cash flows, one of which pays a fixed rate of ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Recession

    A significant decline in activity across the economy, lasting ...
  4. Risk

    The chance that an investment's actual return will be different ...
  5. Swap

    Traditionally, the exchange of one security for another to change ...
  6. Securitization

    The process through which an issuer creates a financial instrument ...
Related Articles
  1. Credit Default Swaps: An Introduction
    Bonds & Fixed Income

    Credit Default Swaps: An Introduction

  2. Corporate Bonds: An Introduction To ...
    Bonds & Fixed Income

    Corporate Bonds: An Introduction To ...

  3. An Introduction To Swaps
    Options & Futures

    An Introduction To Swaps

  4. How Bitcoin Casinos Work
    Investing Basics

    How Bitcoin Casinos Work

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center