A credit default swap (CDS) is a derivative which provides insurance against loss on a loan.

Name: A credit default swap (CDS) is a derivative which provides insurance against loss on a loan.
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A credit default swap is a financial derivative that allows an investor to "swap" or offset their credit risk with that of another investor, essentially providing insurance against the default of a borrower.

A Credit Default Swap (CDS) Is a Derivative Which Provides