A credit default swap (CDS) in which the protection buyer pays a fee (premium) to purchase default protection on a number of debtors or debt issuers. In addition to the different reference entities (debt issuers) covered by this type of swaps, there is a number of different obligations that, once unmet, trigger a default event. Payments are made as in vanilla CDSs, but the first debtor to default triggers a payoff, either in cash or by physical delivery. In this case, there would be no further payments or payoffs. However, and as in vanilla CDSs, a final payment is typically required when there is a default event.

It is also known as a basket default swap.