The breakeven coupon on a swap is the coupon that gives the swap a zero value. For example, in a credit default swap (CDS), the coupon leg is the fixed rate leg, whilst the asset leg is the floating rate leg. The value of this swap, from the protection buyer’s perspective, is the difference between the present value of the floating rate payment and the present value of the fixed rate coupon. In this “equation”, the fixed coupon that makes the total value of the swap “zero” is the breakeven coupon.