A credit default swap (CDS) which is “contingent” upon the setting-off of two triggers. The first, as in an ordinary or vanilla CDS, is a credit event, such as default on interest payment. The other, which is specific to contingent CDS, is another event, usually in relation to a macro variable (not firm-specific). A contingent CDS is designed to provide cover against unfavorable market movements.

It also called a contingent CDS.