What is a CDS curve?

The Credit Default Swap (CDS) curve is a spread curve stretching from 1 yr to 30 years, representing the yield spread of an entities debt expressed as a spread over swap. read more

Abstract: One of the major input for evaluating a Credit Default Swap (CDS) position is the so-called CDS curve. This curve gives the term structure of the CDS: for some maturities (typically: 1 year, 2 years, 3 years, 4 years, 5 years, 7 years and 10 years) a market spread is given. read more

CDS curves can be either flat or steep. A flat, downwardly trending curve generally indicates that a company is deteriorating, while “healthy” firms have a steep curve. The curve, made by plotting two CDS maturities, can give different glimpses of the market’s feel for a company. read more