(FINANCE) financial instrument in which buyer is someone who needs insurance against the possibility that a borrower will default on a loan. In that case, the counterparty is whoever receives the CDS premiums, and pays out in the event of default.

WHY IT'S BAD
Loans are usually made by either commercial banks (in which a loan officer is supposed to make a professional assessment of risk of default before handing over the money), or by investment banks (which underwrite securities like bonds). If the borrower has a high risk of default, then the loan should not be made--period.

Credit default swaps were a stupid method of supposedly turning a bad loan into a "risky" (and potentially high-yield) "investment"; they were in reality a strategy for fraud. Since portfolio managers knew they were bundling securitized loans that contained mostly crap, they would arrange credit default swaps and cash in when the borrowers defaulted.

What the bankers hit on was a sort of insurance policy: a third party would assume the risk of the debt going sour, and in exchange would receive regular payments from the bank, similar to insurance premiums. JPMorgan would then get to remove the risk from its books and free up the reserves. The scheme was called a "credit default swap," and it was a twist on something bankers had been doing for a while to hedge against fluctuations in interest rates and commodity prices.

{Newsweek, "The Monster That Ate Wall Street," 27 Sep 2008}

credit default swap by Abu Yahya July 17, 2010

Dhea

Is beautiful, super cute and very sweet. She is also funny. If you meet her, never let her go.

Dhea is perfect!
I love Dhea!

Dhea by Iknoweverythingxo February 24, 2017

default dinner

The what to eat decision made for evening meal, usually when out of food.

Damn, the folks are coming over...mac n cheese default dinner? Maybe with hot dog chunks?

Nothing to eat kids. Can smell Jim's grill, though. Sneak over for default dinner.

default dinner by msdee January 5, 2017

DEFACTOID

DEFACTOID:- A person, animal or device which is mainly used to commit activities to reduce or demolish the activities of the opposition.

Don't waste your time planning to finish him off, get DEFACTOID on it - defact him fast!

DEFACTOID by 1STFABARM May 1, 2019

Whale

In sales terms, a whale is a prospect that is significantly larger than an organization’s average customer.

Whales are large and extremely difficult to close. Due to their immense size, they are highly sought-after.

A whale is typically identified at first by a whale hunter on the sales team, but often requires cross-discipline participation in order to close; this includes assistance from operations, engineering, creative, client success, and business development teams.

"Shit...the sales director chewed me out on the sales call this morning. He's totally pissed that I have nothing in my pipeline. I've been focused on this one whale for so long that I haven't had time to prospect for normal-sized deals."

Whale by FQ_GFY February 3, 2020

Word of the Day on September 21, 2026

Concrete cowboy

A guy who thinks he's a country kinda guy, but in reality lives a comfortable city / suburban life.

Eugene: Look at that dude in the cowboy hat!
Todd: He's just a concrete cowboy.

Concrete cowboy by EugeneJohnson42000 March 16, 2024

Word of the Day on September 20, 2026

hobo loko

any hard liquor that is cheap & potent.. eg. relska, popov, potters, evan williams, kamchatka, fireball, rumpleminze, southern comfort, everclear

hey let's get a drink of that?

go ahead
*takes drink* ugh wtf is that?

everclear & bepsi
fucking hobo loko eeessshh

hobo loko by d i z k o 2 0 8 September 14, 2026

Word of the Day on September 19, 2026

God Shot

A chance happening with profound meaning, an unexpected blessing, a "sign".

Dr. Drew on Celebrity Rehab said "All of a sudden what had been just another Hollywood proposal became for him an unexpected blessing, an opportunity for growth. In drug recovery language, that's called a "God shot."

God Shot by Imogen1564 February 25, 2011

Word of the Day on September 18, 2026

city chicken

A food native to Pittsburgh/Western Pennsylvania in which cubes of pork and/or veal are put on a short, wooden skewer, breaded, then baked and/or fried.

I've heard that city chicken originated during the Great Depression, when folks didn't have enough money to buy full cuts of meat, so they assembled meat scraps on a wooden skewer, creating a make-shift drumstick. Hence the name.

Are yinz havin' city chicken for dinner?

city chicken by TRF August 31, 2006

Word of the Day on September 17, 2026