Credit Default Swap - CDS
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Definition of 'Credit Default Swap - CDS'
A swap designed to transfer the credit exposure of fixed income products between parties. A credit default swap is also referred to as a credit derivative contract, where the purchaser of the swap makes payments up until the maturity date of a contract. Payments are made to the seller of the swap. In return, the seller agrees to pay off a third party debt if this party defaults on the loan. A CDS is considered insurance against non-payment. A buyer of a CDS might be speculating on the possibility that the third party will indeed default.
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Investopedia explains 'Credit Default Swap - CDS'
The buyer of a credit default swap receives credit protection, whereas the seller of the swap guarantees the credit worthiness of the debt security. In doing so, the risk of default is transferred from the holder of the fixed income security to the seller of the swap. For example, the buyer of a credit default swap will be entitled to the par value of the contract by the seller of the swap, should the third party default on payments. By purchasing a swap, the buyer is transferring the risk that a debt security will default.
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Search results for 'Credit Default Swap (CDS) '
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http://www.investopedia.com/articles/bonds/09/what-happens-to-single-name-cds.asp
... Even though credit default swaps (CDS) are basically insurance policies against
the default of a bond issuer, many investors had used these securities to take ...
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http://www.investopedia.com/articles/optioninvestor/08/cds.asp
... June 04 2008 | Filed Under ยป Bonds, Derivatives, Insurance. Credit default swaps
(CDS) are the most widely used type of credit derivative and a powerful force ...
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http://www.investopedia.com/articles/optioninvestor/07/credit-der-index.asp
... Advertisement - Article continues below. Credit Default Swaps The credit
default swap (CDS) is a type of credit derivative. Single ...
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http://www.investopedia.com/articles/trading/11/introduction-swap-market.asp
... Check out 5 Equity Derivatives And How They Work.); Credit Default Swaps A credit
default swap, or CDS, is a different type of swap, in that the traditional ...
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http://stocks.investopedia.com/stock-analysis/2010/Best-Country-Investments-For-The-Remainder-Of-2010-RSX-EPU-TEO-YPF-PAM0121.aspx
Which of these countries has the most momentum, and the
most improved credit default swap (CDS) score? ...
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http://www.investopedia.com/articles/trading/08/negative-basis-trades.asp
... the credit default swap is the expensive asset (remember from above that the cheap
asset has a greater spread). You can think of this as an equation: CDS basis ...
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http://stocks.investopedia.com/stock-analysis/2008/AIG_Reduces_Hot_Air_Emissions_AIG.aspx
... The company's credit-default-swap (CDS) portfolio was used to protect against
loan defaults, including subprime mortgage defaults. ...
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http://stocks.investopedia.com/stock-analysis/2009/Better-Banks-Abroad-HBCBCSEWI0519.aspx
... More significantly, HSBC Bank has consistently had one of the least expensive credit
default swap (CDS) prices for any major bank or broker throughout this ...
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http://stocks.investopedia.com/stock-analysis/2010/An-Oversold-Market-Means-Bargains-AIG-X-R-MOT-IVZ0209.aspx
... An examination of the Credit Default Swap (CDS) market shows a large spike in
the cost of protection from defaults for various countries. ...
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http://www.investopedia.com/articles/forex/11/3-markets-follow-trading-fx.asp
... Credit Default Swap Markets A relatively unknown market, credit default swaps or
CDS instruments can be great in showing long-term sentiment for individual ...
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