Laxi Dictionary

American Dictionary

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Definition credit default swap in American English

credit default swap noun

[countable] noun
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.

Example

Some have suggested credit default swaps have made the financial crisis of 2008 even worse.

Synonyms and related words
borrowing power borrowings call it quits
Definition credit default swap in American English