credit default swap

noun

1. 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 CDS

Example Sentences

These are what we refer to as credit default swap rates, and they are similar to fail rates for other stable companies in other industries.

From Scientific American

The 6-month credit default swap dropped 13 basis points from Thursday's close to 212 basis points, data from S&P Global Market Intelligence showed.

From Reuters

The one-year credit default swap dropped 9 basis points, while the most commonly used five-year credit default swap was down one basis point, the data showed.

From Reuters

But dear God, this thing is more derivative than a credit default swap.

From Washington Post

The spread on the Markit high yield credit default swap index - which tracks the cost to insure high-yield corporate debt and is a proxy for the junk market - went up to over 570 basis points on Monday from 532 on Friday, hitting its highest level since May 2020.

From Reuters