Credit default swap

(CDS).

A variety of swap agreement that enables the effective transfer of credit risk from one party to the other.

The pricing of credit default swaps is used as a market valuation of relative counterparty risk.

See also

• BCDS
• Capital market swap
• Constant maturity credit default swap
• Counterparty risk
• Credit
• Credit default swap index
• Credit risk
• Default
• International Swaps and Derivatives Association
• Putting a limit on losses
• Swap
• Swap overlay

Other link

Credit Default Swap based loan pricing, ACT 2008