Credit Default Swap | Part 3| Moorad Choudhry
And on to Part III (of IV) in the golden oldie series on Credit Derivatives, here is "Introduction to Credit Default Swaps". When one hears of the CDS price on a reference name rising, it indicates that the market thinks the probability of default of that name is increasing - hence when earlier this year the CDS levels of Deutsche Bank and Credit Suisse started to spike, it was the cue for negative market commentary on those two names. Possibly a better indicator of a company's perceived good health than its share price, but I'm not getting into that debate here!