Читать книгу The Emerging Markets Handbook - Pran Tiku - Страница 51

CDS stands for credit default swap. It can be thought of as insurance against the possibility of a credit event occurring in the future. The buyer of the protection pays a premium to the seller, and this premium is called the CDS spread. For example if a CDS has a spread of 950 basis points for a five-year China debt it means that default protection for a notional amount of $1 million costs $95,000 per year.