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| | A credit default swap represents the price at which two counterparties will exchange this risk a¬" the protection "seller" takes the risk of default of the credit in return for a payment, commonly denoted in basis points (one basis point being 1/100 of a percent) of the notional amount to be referenced, while the protection "buyer" pays this premium and in the case of default of the underlying (a loan, bond or other receivable), delivers this receivable to the protection seller and receives from the seller the par amount (i.e., is made whole). secured credit card | | chase credit card | | free credit score free credit score |
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