Credit default swaps are a financial derivative used to offset the risk of lending money. These financial tools are somewhat infamous in the modern era due to their role in the Great Recession.

Interest rate swaps and credit default swaps are sophisticated financial management techniques. Although their names are similar, these investment tools have little in common. Differences exist in the ...

As Bear Stearns careened toward its eventual fire sale to JPMorgan Chase last weekend, the cost of protecting its debt, through an instrument called a credit default swap, began to rise rapidly as ...

It’s usually not a good sign when obscure financial instruments are making headlines. And that’s the case now as the political standoff over the U.S. government’s debt ceiling puts credit-default ...

Credit-default swaps linked to SpaceX began trading Thursday after the company completed its first high-grade bond offering earlier this week, Bloomberg reported. The development allows investors to ...

This is how it works. When you buy a CDO it’s recommended you also buy a CDS. A CDO is a “collateralized debt obligation.” These are financial assets that were in high demand in the years leading up ...

Credit default swaps (CDSs) provide protection for investors in the event that the borrower defaults on their debt or loan. They can play a pivotal part in financial and investment industries, as they ...

Immediately after the administration announced last week that it would be sending legislation to Congress to regulate derivatives, “experts” in the media started repeating the erroneous statements ...

Credit Default Swaps have received their share of blame for the financial crisis. American International Group’s CDS business not only brought down the insurer but also nearly toppled the financial ...

Vultures, rats and maggots are often the focus of disgust, less because of anything for which they can be blamed, and more because of the conditions with which they are associated. Death, disease and ...

The Obama administration's blueprint for how to prevent another financial crisis takes aim at credit default swaps. They are the derivatives that got AIG into trouble, requiring a $180 billion ...

When crisis strikes, humans naturally seek a simple explanation. In turn, simple explanations require simple causes. Until recently, sub-prime mortgages were assigned much of the blame for the Panic ...