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Home > QFINANCE Dictionary > Definition of credit default swap

Definition of

credit default swap

Stockholding & Investments

assumption of credit risk in return for payments a derivative instrument similar in structure to an insurance policy, in which the buyer of the instrument agrees to make payments to the seller in return for a guarantee that the seller will assume the credit risk of a third party.

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Definitions of ’credit default swap’ and meaning of ’credit default swap’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’credit default swap’ and other financial terms with our online QFINANCE Financial Dictionary.

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