credit default swap - definition and synonyms

noun [countable] economics 

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singularcredit default swap
pluralcredit default swaps
  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 suggested credit default swaps have made the financial crisis of 2008 even worse.