Investment Glossary · Quick read · No ads
Credit Default Swap (CDS)
A financial derivative that functions like insurance against a borrower defaulting on debt; the buyer pays a premium and receives a payout if the referenced entity defaults.
What is Credit Default Swap (CDS)?
A financial derivative that functions like insurance against a borrower defaulting on debt; the buyer pays a premium and receives a payout if the referenced entity defaults.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
