Credit default swaps (CDSs) provide protection for investors in the event that the borrower defaults on their debt or loan. Here's what you need to know.

A credit default swap is analogous to an insurance policy written against the possibility of some kind of negative "credit event," such as, for example, ...

Every credit default swap has at least three parties, but can include more. And, beyond mortgages, banks and investors can purchase credit swaps on a number of financial products, as a way to mitigate ...

A credit default swap involves movement of the credit risk from a bond, mortgage-backed security, or corporate debt from one party to another. The buyer of a CDS gets protection from the negative ...

Credit default swaps are widely used for hedging risk and speculation. For example, if a bank has a large real estate loan, it can buy a CDS to protect against the risk of default losses.

A credit default swap is a form of insurance on bonds that investors buy and sell. When it looks like a bond issuer might have trouble paying, its CDS prices soar because the bonds are more risky.

This formal default on about $100 billion triggered payment of $3 billion in credit-default swaps. These are the non-insurance insurance products that pay off in the event of a default.

WASHINGTON — It can be a fine line between investing and gambling. But in Las Vegas, you know the odds. On Wall Street, that's not always the case. Especially when it comes to the $62 trillion ...

With credit default swaps, you hide your leveraged bond position from regulators and investor. There is nothing intrinsically opaque about credit default swaps.

The credit default swap market presaged Monday's multi-notch downgrade by Moody's, and is pricing in even higher levels of stress than the rating agencies over the intermediate term.

The cost of insuring Israel's debt against default dropped to its lowest level since just after the October 7 Hamas attacks ...

Hedge-fund managers are putting a new twist on credit-default swaps, using the contracts to fortify bets on troubled companies. The swaps, which work like insurance policies when companies default ...