Credit Default Swaps
1 min read
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Get full access to all Data Science, Machine Learning, and AI courses built for finance professionals.
One-time payment - Lifetime access
Or create a free account to start
A step-by-step guide covering Python, SQL, analytics, and finance applications.
Or create a free account to access more
In a credit default swap, the credit protection buyer pays a fee to the credit protection seller to protect him from the default of a reference asset. As protection, the protection seller will make the payment to the protection buyer on the occurrence of a credit event.
This video from Khan Academy provides an introduction to credit default swaps and explains how they work.