Bond Default Swap
A bond default swap transfers credit risk on a bond issuer or obligation, functioning as protection against a defined credit event.
CDO, CDX, loan credit-default swap, single-name CDS, and synthetic credit-product terms.
Structured Credit and Synthetic Products is the financial-instruments landing page for CDOs, CDS indexes, single-name CDS, loan CDS, bond default swaps, credit events, and synthetic credit exposures. It keeps related terms in one branch so readers can move from a broad instrument question to the article that owns the contract evidence.
Use this page when a structured-credit or synthetic product changes credit-risk transfer, tranche priority, or default-event exposure. Use the parent Derivatives page when you need the broader instrument map. For an individual decision, confirm the contract, term sheet, prospectus, confirmation, exchange specification, or disclosure record before relying on the term.
Use the table below to move from this landing page into the term page that best matches the instrument evidence.
| Term | Use it for |
|---|---|
| Bond Default Swap | Bond Default Swap identifies credit-risk transfer, credit-event, tranche, or synthetic exposure terms that require careful contract support. |
| Collateralized Debt Obligation (CDO) | Collateralized Debt Obligation (CDO) identifies credit-risk transfer, credit-event, tranche, or synthetic exposure terms that require careful contract support. |
| CDX | CDX identifies credit-risk transfer, credit-event, tranche, or synthetic exposure terms that require careful contract support. |
| Credit Default Option | Credit Default Option identifies credit-risk transfer, credit-event, tranche, or synthetic exposure terms that require careful contract support. |
| Credit Event | Credit Event identifies credit-risk transfer, credit-event, tranche, or synthetic exposure terms that require careful contract support. |
| LCDS | LCDS identifies credit-risk transfer, credit-event, tranche, or synthetic exposure terms that require careful contract support. |
| Single-Name CDS | Single-Name CDS identifies credit-risk transfer, credit-event, tranche, or synthetic exposure terms that require careful contract support. |
| Weighted Average Rating Factor (WARF) | Weighted Average Rating Factor (WARF) identifies credit-risk transfer, credit-event, tranche, or synthetic exposure terms that require careful contract support. |
A CDS can transfer default risk without transferring the bond itself, so the reference obligation and credit-event language control the payoff.
Structured Credit and Synthetic Products content is educational and does not provide personalized investment, tax, legal, accounting, valuation, derivatives, or securities advice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
A bond default swap transfers credit risk on a bond issuer or obligation, functioning as protection against a defined credit event.
CDX or Credit Default Swap Index is a financial instrument that provides diversified risk and broad market exposure, and is standardized and traded in the derivative market.
A collateralized debt obligation pools debt exposures into tranches with different credit risk, priority, and return profiles.
A credit default option gives option-like exposure to a credit event or credit spread move rather than continuous swap protection.
Credit Event is a financial instrument concept used in contract analysis, payoff profiles, pricing, or risk transfer.
A Loan Credit Default Swap (LCDS) is a financial derivative that allows parties to hedge or speculate on the risk of default in syndicated loan markets.
A single-name CDS is a credit default swap referencing one borrower or issuer rather than an index or basket.
Weighted average rating factor is a portfolio credit-quality metric used in structured credit analysis and collateralized loan obligation monitoring.