A headline from S&P global market is out saying:
- five-year credit default swaps rise at to 51 basis points
- highest level since 2012.
The price is reflective of the concerns about risks in the economy. A credit default swap (CDS) is a financial derivative contract that allows participants to manage or transfer the risk of default on a credit instrument, such as a bond or loan. Essentially, it is a form of insurance against the risk that a borrower will not meet their obligations to repay a loan or bond.