Robeco logo

Disclaimer

The information contained in the website is solely intended for professional investors. Some funds shown on this website fall outside the scope of the Dutch Act on the Financial Supervision (Wet op het financieel toezicht) and therefore do not (need to) have a license from the Authority for the Financial Markets (AFM).

The funds shown on this website may not be available in your country. Please select your country website (top right corner) to view more information.

Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports, which can be all be obtained free of charge at this website and at the Robeco offices in each country where Robeco has a presence.

By clicking Proceed I confirm that I am a professional investor and that I have read, understood and accept the terms of use for this website.

Decline

Fixed income

Credit default swaps (CDS)

Credit default swaps (CDS) are financial derivatives that function as a type of insurance against the risk of default on debt securities, such as bonds or loans. It can be thought of as insurance against credit risk. In a CDS agreement, the buyer pays periodic premiums to the seller in exchange for compensation if the underlying debt issuer defaults or experiences a credit event, like a downgrade.


CDS contracts

CDS contracts allow investors to manage credit risk by transferring the potential losses to another party. They can also be used for speculative purposes, allowing investors to profit from changes in the perceived credit risk of an entity. The value of a CDS depends on factors such as the creditworthiness of the underlying issuer, market conditions, and the terms of the contract.

Credit default swaps (CDS)



Also read

Coupon rate
Sovereign bonds
Yield curve


A long history of innovation