A credit default swap (CDS) is a particular type of swap designed to transfer the credit exposure of fixed income products between two or more parties.
Questions tagged [credit-default-swap]
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What exactly is a credit default swap?
I hear a lot about credit default swaps (CDSs) and I do not really know what they are.
Can you please explain it to me? What are they good for?
gyurisc
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What is credit default swap rate?
I understand that for a credit default swap (CDS), its CDS spread is the rate of payments that the buyer of the CDS makes to the seller in each year.
I also heard of "CDS rate". I wonder how it is defined generally? Is it same as CDS spread?
Thanks…
Tim
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Are Credit Default Swaps an adequate hedge for leveraged bond portfolio?
A hedge is supposed to be a cheaper bet that pays off if a primary bet isn't profitable.
With a leveraged bond portfolio, my understanding is that a credit default swap (CDS) can help hedge, but I'm not sure what the premiums are to hold the…
CQM
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Are credit ratings of credit rating agencies per bond or per issuer? What about CDS?
Different sources give me different answers on this:
Are credit ratings of credit rating agencies per bond or per issuer?
If the rating is defined as the likelihood of getting your investment back, then surly the longer the time to maturity the…
user695652
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5 year vs 10 year CDS pricing
I'm looking at CDS curve for a company (see below). I understand the textbook meanings of these CDS spreads which is the premium paid on a notional value to insure against a credit event.
I want to know how 5-year CDS and 10-year CDS relate to each…
Saurabh3321
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The Big Short - shorting vs CDS
I am wondering, why the main protagonists of the movie "The Big Short" bought CDS, which were actually custom made for them and quite expensive.
Why they couldn't / didn't speculate on decline of value, aka to short a CDO and derived securities?…
jpesout
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Why would someone sell credit default swaps for companies with high chance of defaulting?
Similarly, why would anyone buy credit default swaps for companies with low chance of defaulting?
kchoi
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