• Browse Terms by Letter:
Listen how to pronounce

Loan Credit Default Swap (LCDS)

Previous Definition
Next Definition
Popular Terms
A derivative where credit exposure to a loan is traded or swapped between two entities. These can be used for the purpose of hedging against credit exposure that a buyer can have or to obtain credit exposure for a seller. Sometimes LCDSs are used for making bets on the credit quality of an underlying entity.