A credit default swap (CDS) whereby the protection buyer makes a payment to the protection buyer only after the Nth reference entity has been in default, provided that no payment has ever been made for default of the previous entity. The credit default swaps terminates once a payout for the Nth reference entity is made. That is, if the other reference entities, that have not yet defaulted, do default, the protection seller will not have to make any payout
July 13, 2023