credit default swap

noun

1. CDS. 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

Example Sentences

Bank of America’s and Citigroup’s 5-year credit default swap spreads both trade at 58 basis points after rising to that level on Thursday following the reports about U.S. regional banks.

Read more on The Wall Street Journal

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.

Read more on 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.

Read more on 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.

Read more on Reuters

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

Read more on Washington Post