A credit default swap (CDS) is a contract that protects lenders from borrower default. Learn how a CDS works, why they’re used, and the key risks in financial markets.

Credit default swaps (CDSs) provide protection for investors in the event that the borrower defaults on their debt or loan. They can play a pivotal part in financial and investment industries, as they ...

(Bloomberg News) Trading of credit-default swaps insuring U.S. Treasuries soared almost 80 percent as the deadline nears for plans to cut the nation's budget deficit and raise the $14.3 trillion debt ...

As Bear Stearns careened toward its eventual fire sale to JPMorgan Chase last weekend, the cost of protecting its debt, through an instrument called a credit default swap, began to rise rapidly as ...

Credit Default Swaps have received their share of blame for the financial crisis. American International Group’s CDS business not only brought down the insurer but also nearly toppled the financial ...

Investors are getting nervous the U.S. government might struggle to pay its debt — and they are snapping up insurance in case it defaults. The cost of insuring exposure to U.S. government debt has ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician ...

Few Americans have heard of credit default swaps, arcane financial instruments invented by Wall Street about a decade ago. But if the economy keeps slowing, credit default swaps may become a household ...