A Credit Default Option (CDO) is an option that grants the holder the right, but not the obligation, to enter into a credit default swap at a predetermined price on a specified future date. It is a form of swaption and is used to hedge against credit risk.
A Credit Default Swap (CDS) is a financial derivative that allows an investor to 'swap' or offset their credit risk with that of another investor.
A financial derivative that functions like an insurance contract where one party pays periodic fees in exchange for compensation in the event of default by a third party, known as the reference entity.
A credit default swap (CDS) is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. The buyer of a CDS makes periodic payments to the seller and, in return, receives a payoff if the underlying financial instrument defaults.
A financial instrument where the payoff is linked to the credit rating or payment performance of the underlying asset, involving various structures such as unfunded and funded derivatives.
