State Bank of India and Standard Chartered Bank India carried out a Credit Default Swap (CDS) trade worth ₹25 crore.

Banking & Finance

State Bank of India and Standard Chartered Bank India carried out a Credit Default Swap (CDS) trade worth ₹25 crore. The trade involved a 1-year rupee CDS featuring REC. A credit default swap (CDS) is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse them if the borrower defaults.


      Most CDS contracts are maintained via an ongoing premium payment similar to the regular premiums due on an insurance policy.

     

     

 

     


State Bank of India

Founded- 1 July 1955
Chairperson- Dinesh Kumar Khara
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