Credit Default Swap (CDS)
A credit default swap transfers default risk through premium payments and protection payments tied to defined credit events.
Credit default swap, index CDS, equity swap, total-return swap, variance swap, volatility swap, and zero-basis-risk swap terms.
Credit, Equity, Total-Return, and Volatility Swaps is the financial-instruments landing page for swap mechanics, ISDA documentation, notional principal, interest-rate swaps, currency swaps, credit derivatives, total-return swaps, variance swaps, volatility swaps, and inflation swaps. 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 swap or rate-linked derivative changes cash-flow exchange, counterparty exposure, hedging, or valuation. Use the parent Swaps, Rates, and Credit 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 |
|---|---|
| Credit Default Swap (CDS) | Credit Default Swap (CDS) identifies credit-risk transfer, credit-event, tranche, or synthetic exposure terms that require careful contract support. |
| Equity Swap | Equity Swap helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs. |
| Index CDS | Index CDS identifies credit-risk transfer, credit-event, tranche, or synthetic exposure terms that require careful contract support. |
| Total Return Swap (TRS) | Total Return Swap (TRS) helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs. |
| Variance Swap | Variance Swap helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs. |
| Volatility Swap | Volatility Swap helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs. |
| Zero-Basis Risk Swap (ZEBRA) | Zero-Basis Risk Swap (ZEBRA) helps define exchanged cash flows, notional exposure, counterparty terms, or swap valuation inputs. |
An interest-rate swap can convert fixed-rate debt exposure into floating-rate exposure without refinancing the underlying loan.
Credit & Vol Swaps content is educational and does not provide personalized investment, tax, legal, accounting, valuation, derivatives, or securities advice.
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A credit default swap transfers default risk through premium payments and protection payments tied to defined credit events.
An equity swap exchanges equity-index, stock, or portfolio returns for another cash-flow leg without transferring direct ownership.
An index CDS references a basket of credit names, letting traders hedge or take exposure to broad credit spreads.
A total return swap transfers an asset's price return and income to one party while another receives a financing or reference-rate leg.
A variance swap pays based on realized variance versus a fixed variance strike, isolating squared-volatility exposure.
A volatility swap pays based on realized volatility versus a fixed volatility strike, giving direct exposure to volatility levels.
A zero-basis risk swap is designed to minimize mismatch between related exposures that should otherwise offset each other.