Risk of default if the CDS seller can’t pay their end of a CDS if needed; if this occurs, the buyer may face losses. Played a major role in the 2008 financial crisis due to misuse and lack of ...

A credit default swap is insurance against the possibility of default. Learn about their role in the financial crisis of 2007-09.

Credit default swaps are insurance-like contracts that promise to cover losses on certain securities in the event of a default. They typically apply to municipal bonds, corporate debt and mortgage ...

The rule stems from the Dodd–Frank Act of 2010, in which Congress chose the Securities and Exchange Commission (SEC) as the primary regulator to police the markets for security-based swaps (SBS ...

Credit-default swap. November 19, 2005 at 7:00 p.m. EST * In finance, an arrangement that provides a bondholder with insurance against default by the bond's issuer, ...

Oct. 31 (Bloomberg) -- The European sovereign debt crisis stands as the latest in a long line of similar crises. Argentina in 2001. Russia in 1998. Mexico in 1994. The list goes back into history ...

A credit derivative contract used as protection against a potential default on a debt security or for speculation. An investor buying a credit default swap pays a regular fee to transfer the risk ...

Credit default swaps are back in fashion — even if the panic might be overblown ... If a borrower, in this case, the U.S. government defaults on its debt, the seller must compensate the buyer.

The potential failure of bond insurer ACA Capital Holdings <ACAH.PK>, which is struggling to make payments to some counterparties, may create confusion in settling contracts that insure ACA ...

NEW YORK — One festering problem that led to the financial meltdown hasn’t been addressed yet: credit default swaps. The swaps — which were intended either as insurance on debt or side bets ...