credit default swap

Dear All:

Could you please give the example and some explaination of credit default swap. I have read many times but still not clear about this concept.

thank you so much for your time

have you tried :

My understanding is that it hedges against default risk. Hence, if the credit quality of something deteriorates, the CDS gains; and if the credit quality improves, then the CDS loses.

check it over my blog. A video tutorial and related articles to CDS for application.