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 ...

This article was first published in March 2008. We have since updated the credit default swap ratings so they reflect the current positions. The whole point about the 'credit crunch' - is that it ...

Usually, investors buy CDSs to protect themselves against ... insurance company — it collects premiums for selling credit default swaps and then hopes that the amounts it pays out on defaults ...