Investors can insure corporate bonds through an arrangement called a credit default swap.

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A credit default swap is a financial contract between two parties in which one party makes periodic payments to the other party in exchange for protection against the risk of a credit event (such as a default) on a particular bond or set of bonds. This can provide investors with a way to mitigate some of the risks associated with corporate bonds.

Investors Can Insure Corporate Bonds Through an Arrangement Called a Credit