Word.ws English Dictionary

credit default swap

credit default swap noun: a credit derivative contract between two counterparties, whereby the buyer (seller of risk) makes periodic payments to the seller (buyer of risk) in exchange for the right to a payoff if there is a default or other credit event in respect of a third party called reference entity.

Noun

credit default swap (plural credit default swaps)

  1. A credit derivative contract between two counterparties, whereby the buyer (seller of risk) makes periodic payments to the seller (buyer of risk) in exchange for the right to a payoff if there is a default or other credit event in respect of a third party called reference entity.
    • The cost of that funding is partially influenced by the price of an instrument known as a credit default swap — essentially, a form of insurance that one party buys to protect against the possibility that another party will default. The higher the risk of default, the higher the price of the...2023 March 15, Michael J. de la Merced, Maureen Farrell, “Credit Suisse to Borrow Up to $54 Billion From Central Bank”, in The New York Times
    Synonyms:
    CDS

Synonyms of credit default swap

Forms of credit default swap

pluralcredit default swaps

Questions about credit default swap

What does credit default swap mean?
Credit default swap means a credit derivative contract between two counterparties, whereby the buyer (seller of risk) makes periodic payments to the seller (buyer of risk) in exchange for the right to a payoff if there is a default or other credit event in respect of a third party called reference entity.
What part of speech is credit default swap?
Credit default swap is a noun.
What is the plural of credit default swap?
The plural of credit default swap is credit default swaps.

Words near credit default swap in the dictionary

  1. credit crunch
  2. credit crunched
  3. credit crunches
  4. credit default option
  5. credit default options
  6. credit default swap
  7. credit default swaps
  8. credit event
  9. credit events
  10. credit facilities
  11. credit facility

Source and license

Adapted from Wiktionary: credit default swap (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.

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