Meaning of “credit default swap” in the English Dictionary


"credit default swap" in Business English

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credit default swapnoun [ C ]

uk us also credit swap

FINANCE a type of credit derivative in which the buyer pays the seller for the right to get money back if a particular loan, bond, etc. is not paid back:

The cornerstone of the credit derivatives market is the credit default swap, a sort of insurance policy that allows two parties to exchange the credit risk of an issuer.

(Definition of “credit default swap” from the Cambridge Business English Dictionary © Cambridge University Press)