Credit Default Swaps, Cross‐Currency Swaps, and Other Swaps

This chapter explored credit default swaps, cross-currency swaps and other swaps. Credit default swaps are agreements between two counterparties to exchange periodic payments of spread in return for a payment contingent on a credit event. Cross-currency swaps are agreements similar to interest rate swaps where cash flows exchanged are in different currency. This chapter also briefly explores equity swaps and commodity swaps.