Credit Default Swap Index Trading Hits Record $4.5 Trillion in Q1 2026
Investors increased hedging against corporate defaults as trading volume in major CDS indexes rose 69% from a year earlier, surpassing the previous record set during Q2 2025 tariff-related market turmoil.
Summary
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Terms & Concepts
- Credit default swap: A derivatives contract that lets investors hedge or trade the risk that a borrower will fail to repay its debt.
- CDS index: A basket-based credit derivatives benchmark tracking default risk across multiple corporate borrowers rather than a single issuer.