The price of protection that is extended by a protection seller to a protection buyer in a credit default swap (CDS) or a similar arrangement. CDS prices are usually quoted in terms of credit spreads (CDS spreads), reflecting the implied number of basis points that the protection seller receives from the protection buyer against payment of the premium (CDS premium).
CDS price (a type of credit spread) is a measure of, and reflect changes, in credit risk in the market or in relation to a specific credit-risk product. Increases in CDS prices reflect a liquidity premium or possibly an update of default probability expectation.
