A swap that combines two offsetting credit default swaps (CDS): a regular CDS and a CMCDS (constant maturity credit default swap). This swap is structured in a way that the two underlying swaps have identical features (such as fixing dates, notional principals, and maturity) except the offsetting spread payments. The combined swap allows investors and market participants to take a view on the spread curve, irrespective of the possibilities of default.

For instance, if an investor predicts a widening spread to an extent larger than what is implied in the current spread curve, he would prefer to receive a floating spread in a CMCDS and pay the fixed spread in a CDS. In the event of default, the credit event payments will offset any inverse consequences, preserving whereby a constant spread.