Credit default swaps

What is credit default swaps?What are the norms?
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Quick Summary
Credit Default Swaps (CDS) are financial instruments that allow for the swapping of credit risk. Essentially, they act as a form of insurance for lenders. If a borrower is unable to repay their debt, a CDS can be used to mitigate the lender's losses and help secure their own credit rating.

It's a swaping of credits with bank say you are unable to repay Ur borrower one can use CDS.

It helps in securing Ur credit rating. 

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