Word forms: (regular plural) credit swaps
( Finance : Investment )
credit default swap
A credit swap is an alternative method of obtaining debt capital for a foreign subsidiary without
sending funds abroad.
The buyer of a credit swap will be paid by the seller if the security defaults.
A credit swap is a kind of insurance against credit risk where a third party agrees to pay a lender
if the loan defaults, in exchange for receiving payments from the lender.
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