A credit default swap is, essentially, insurance purchased against the possibility of default. Credit default swaps became famous (or, rather, infamous) during the financial crisis of 2008-09.

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 ...

The Journal of Finance, Vol. 76, No. 2, DIMENSIONAL FUND ADVISORS AND BRATTLE GROUP PRIZES FOR 2020 (April 2021), pp. 537-586 (50 pages) This study analyzes the motivations for and consequences of ...

Credit default swaps are a crucial profit center for big banks. According to a report by Deloitte, the financial instruments account for roughly $55 billion of the banking industry's annual revenue.

* In finance, an arrangement that provides a bondholder with insurance against default by the bond's issuer, usually in exchange for regular payments. * A form of credit derivative that can be ...

1002 GMT – The cost of insuring euro-denominated credit against default using credit default swaps rises on reduced appetite for risk after the U.S. Federal Reserve on Wednesday cut interest ...

We investigate how market participants price and manage counterparty credit risk using confidential trade repository data on single-name credit default swap (CDS) transactions. We find that ...

NEW YORK, Nov 20 (Reuters) - Liquidity in credit default swaps is expanding across more companies while credit spreads in both the investment grade and high-yield sectors have rallied in the ...

The cost of insuring euro-denominated credit against default was unchanged, having risen on Friday after Trump threatened 50% tariffs on goods from the EU.

SEC Chairman Christopher Cox has called on Congress to pass legislation that would make so-called credit default swaps more transparent, including requiring that dealers in over-the-counter swaps ...