An abbreviation for spread DV01 (of a CDS position), i.e, the spread dollar value of an 01; it captures the change in the market value of the credit default swap position as a result of a one basis point shift along the par CDS curve of a given reference entity (with other things held constant). It is the dollar value of a one basis change in the credit spread (i.e., CDS premiums).

In other words, SDV01 measures the change in the mark-to-market (MTM) value of a given CDS as a result of a one basis point change in the CDS quotation.

The formula of a SDV01 is:

SDV01 = – (Δ MTM), for 1 bp in credit spread.

A positive SDV01 means that the CDS position will shed value in response to a 1 basis point upward shift in the CDS seller’s spread curve.