noun

• short for credit default swap

  ‘triggering the CDS might even help Europe reduce the risk of contagion in the months ahead’

  More example sentences

  • ‘the lack of transparency in the CDS market has been harmful’
  • ‘Everything became a "crowded trade" - from equities, to junk, to converts, to CDS, to MBS, to manic homebuying.’
  • ‘Corporate bond spreads generally widened slightly, with auto bond and CDS spreads moderately wider this week.’
  • ‘In a disturbing new trend, international banks are creating syndicated credit facilities that "weaponise" credit default swaps (CDS) by using the trading price of a borrower's CDS to set the interest rate paid by the borrower.’
  • ‘Recently, it was reported that banks have started tying commercial loan interest rates to the price of a borrower's CDS.’
  • ‘My impression is that most CDS agreements run three to five years.’