What is Credit Default Swap (CDS)

490 views

Can anyone explain me what is a Credit Default Swap? And what are the merits and demerits of it?

In: Other

4 Answers

Anonymous 0 Comments

A CDS is a derivative product (an agreement or contract) that exchanges the risk of default on a certain set of securities. Since it’s basically an insurance policy, all of those parts are variable and part of the negotiation process between the insurer and buyer.

You are viewing 1 out of 4 answers, click here to view all answers.