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Pari Passu

A Latin phrase that means "on equal footing", "with equal pace", or "with equal step". Credit default swaps (CDSs) are...

Callable CDS

A variant on cancellable credit default swap (cancellable CDS) where the protection buyer has the right to unwind the swap...

Naked Credit Default Swap

A credit default swap (CDS) in which the buyer doesn’t own, or has a long position in, the underlying corporate...

Callable Credit Default Swap

A variant on cancellable credit default swap where the protection buyer has the right to unwind the swap contract at...

Forward CDS

A credit default swap (CDS) which comes into life at some future start date, provided that no default event occurs...

Islamic Credit Default Swap

A credit default swap (CDS) that is structured to be permissible by shari'ah. It is based on some shari'ah-compliant underlyings...

Leveraged CDS

A credit default swap (CDS) in which the underlying is a syndicated secured loan rather than corporate or sovereign bonds,...

Add-Up Basket Credit Default Swap

A basket credit default swap that pays off on the condition that any of the reference entities defaults. As such,...

Linear CDS

A linear credit default swap; a basket credit default swap (credit default basket swap) in which the investors (protection sellers)...

Pay-As-You-Go CDS

A credit default swap (CDS) transaction which has as underlying a bond such as an asset-back security (ABS) or a...