a financial instrument for protecting against the risk that a company or organization will not pay money that they owe. The buyer pays interest to the seller and receives a large amount of money if the debt is not paid. The seller receives interest from the buyer and pays them a large amount of money if the debt is not paid.
Some have suggestedcreditdefaultswaps have made the financialcrisis of 2008 even worse.
Synonyms and related words
Relating to borrowing money and owing money
borrowing
borrowing powers
call it quits
credit default swap
noun countable economics
US
Word Forms
singular
credit default swap
plural
credit default swaps
DEFINITIONS1
1
a financial instrument for protecting against the risk that a company or organization will not pay money that they owe. The buyer pays interest to the seller and receives a large amount of money if the debt is not paid. The seller receives interest from the buyer and pays them a large amount of money if the debt is not paid.
Some have suggestedcreditdefaultswaps have made the financialcrisis of 2008 even worse.