Contingent Credit Default Swap (CCDS)
 |
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.
|
-
Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.
Read More »
-
Learn how these derivatives work and how companies can benefit from them.
Read More »
-
This derivative can help manage portfolio risk, but it isn't a simple vehicle.
Read More »
|
|
