credit default swaps CDS
These offer protection against the non-payment of unsecured corporate or sovereign debt. A typical CDS contract features one counterparty agreeing to "sell" protection to another. The "protected" party pays a fee each year in exchange for a guarantee that if a bond goes into default, the seller of protection will provide compensation. [1]
FT Articles & Analysis
- The impact of wider sovereign CDS spreads
- LCH.Clearnet SA to launch CDS clearing in March
- CDS market is far less opaque than presumed
- Derivatives sector wakes up to the new reality
- Inter-dealer brokers thriving in adverse times
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