CDS

British

abbreviation

credit default swap

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

CDS are basically insurance policies for investors who buy bonds, which is what a MBS is.

From Barron's

Someone who wanted protection against a default on their MBS paid a regular premium to a seller of CDS.

From Barron's

In return for the premium, the CDS seller agreed to reimburse the CDS buyer the value of the MBS if and when it defaults.

From Barron's

Shortly after Lehman folded, AIG found itself obligated to pay, all at once, the parties to whom it had sold CDS on MB.

From Barron's

Also like MBS and CDS, new financial assets have begun to interlock in odd, hard-to-understand ways with traditional financial products.

From Barron's

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023