credit default swap
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credit default swap
noun credit default swaps
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A credit derivative contract between two counterparties, whereby the buyer (seller of risk) makes periodic payments to the seller (buyer of risk) in exchange for the right to a payoff if there is a default or other credit event in respect of a third party called reference entity.
The cost of that funding is partially influenced by the price of an instrument known as a credit default swap — essentially, a form of insurance that one party buys to protect against the possibility that another party will default. The higher the risk of default, the higher the price of the C.D.S.,
Similar: CDS
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noun contract
| Español | permuta de incumplimiento crediticio, swap de incumplimiento crediticio, seguro de impago de deuda |
|---|---|
| Deutsch | CDS |
Talk about this word "credit default swap." Wiktionary, via Micwyn, micwyn.com/word/credit%20default%20swap. Accessed 6 Nov. 2026. credit default swap. (n.d.). In Wiktionary, via Micwyn. Retrieved November 6, 2026, from https://micwyn.com/word/credit%20default%20swap "credit default swap." Wiktionary, via Micwyn. Accessed November 6, 2026. https://micwyn.com/word/credit%20default%20swap.Cite this
@misc{credit_default_swap_2026,
title = {credit default swap},
howpublished = {Wiktionary, via Micwyn},
year = {2026},
url = {https://micwyn.com/word/credit%20default%20swap},
urldate = {2026-11-06}
}
