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What Are Credit Default Swaps?

Credit default swaps (CDSs) provide protection for investors in the event that the borrower defaults on their debt or loan.
The Motley Fool

Credit Default Swap: What It Is and How It Works

Credit default swaps (CDS) provide insurance against the default of a debt issuer. With a CDS, the buyer pays a premium to a seller for this protection. If the issuer defaults, the seller compensates ...