Credit default swap
- Japanese
- クレジット・デフォルト・スワップ
- Also known as
- CDS
- Last reviewed
- September 25, 2026
This is a draft, shown for review before publication.
A credit default swap is a trade in which the protection buyer pays a premium to the protection seller and receives a payment from the seller if a credit event occurs at the reference entity. It is a derivative on the credit risk of a company or a country, and is abbreviated as CDS.
Related terms
Explained in detail
Pages that use this term
- Exchange-Traded vs OTC Derivatives
- Cleared vs Bilateral Trades
- How Swaps Work
- Covered Interest Parity and FX Forward Points
- Credit Events and Settlement
- Pricing a CDS
- CDS Indices (iTraxx, CDX)
- First-to-Default Baskets
- Synthetic CDOs and Tranches
- What Are Structured Products?
- Credit-Linked Notes (CLN)
- Implied Volatility
- Overview of XVA
- CVA and DVA
- Copulas for Credit
- Market Making
- Exposure Profiles by Product
- Wrong-Way Risk
- Counterparty Risk and XVA
- Booking Errors and Confirmation Mismatches
- Lifecycle Event Processing
- Daily Valuation and P&L Sign-Off
- Regulatory Reporting
- Lifecycle Event Data
- Identifiers: LEI, UTI, and UPI
- CVA and DVA in Accounting
- ISDA Protocols
- Events of Default and Termination Events
- Central Counterparties: JSCC, LCH, CME and Others
- CCP Default Management
- Major Electronic Trading Platforms
- Post-Trade Efficiency Services
- Independent Price Verification (IPV)
- Mandatory Clearing
- The Roles of the CFTC and SEC
- Dodd-Frank Act Title VII
- Clearing, Reporting, and Trade Execution Requirements
- MiFID II and MiFIR
- The CVA Risk Capital Charge
- Market Manipulation and Spoofing
- Insider Trading
- The Collapse of Lehman Brothers (2008)
- ESG-Linked Derivatives
- Timeline: The CDS Big Bang Protocol takes effect, and auction settlement is built into CDS contracts