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Credit default swap. It's a financial term. A swap designed to transfer the credit exposure of fixed-income products between parties. Wikipedia defines derivatives as "a special type of contract which derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often called the "underlying".^[1]^[2] Derivatives can be used for a number of purposes - including insuring against price movements (hedging), increasing exposure to price movements for speculation or getting access to otherwise hard to trade assets or markets.

"Some of the more common derivatives include futures, forwards, swaps, options, and variations of these such as caps, floors, collars, and credit default swaps. Most derivatives are traded over-the-counter (off-exchange) or on an exchange such as the Chicago Mercantile Exchange, while most insurance contracts have developed into a separate industry. Derivatives are one of the three main categories of financial instruments, the other two being equities (i.e. stocks or shares) and debt (i.e. bonds and mortgages)."

The off-exchange is HUGE and is a main reason the economy could melt. It is said to be bigger than the world's GDP.

Byron wilkins said:

OK what is CDS

Replies

Byron wilkins August 1, 2014 at 7:42pm

WOW thank you for going the extra mile on that one. Now I see said the blind man.
Spiritual Girl August 1, 2014 at 7:03pm

Amen sista. Hang on tight!!!
Cheryl Nelson August 1, 2014 at 6:51pm

Credit default swap. It's a financial term. A swap designed to transfer the credit exposure of fixed-income products between parties. Wikipedia defines derivatives as "a special type of contract which derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often called the "underlying".^[1]^[2] Derivatives can be used for a number of purposes - including insuring against price movements (hedging), increasing exposure to price movements for speculation or getting access to otherwise hard to trade assets or markets.

"Some of the more common derivatives include futures, forwards, swaps, options, and variations of these such as caps, floors, collars, and credit default swaps. Most derivatives are traded over-the-counter (off-exchange) or on an exchange such as the Chicago Mercantile Exchange, while most insurance contracts have developed into a separate industry. Derivatives are one of the three main categories of financial instruments, the other two being equities (i.e. stocks or shares) and debt (i.e. bonds and mortgages)."

The off-exchange is HUGE and is a main reason the economy could melt. It is said to be bigger than the world's GDP.

Byron wilkins said:

OK what is CDS
Byron wilkins July 31, 2014 at 10:58pm

OK what is CDS

This reply was deleted.