credit default swap
noun[C]
ukus(alsocredit swap)FINANCE
atypeofcreditderivativein which thebuyerpaysthesellerfor therightto getmoneyback if aparticularloan,bond, etc. is notpaidback:
Thecornerstoneof thecreditderivativesmarketis thecreditdefaultswap, asortofinsurancepolicythatallowstwopartiestoexchangethecreditriskof an issuer.