CDS
Abbreviation with 2 meanings
| Stands for | Credit default swap |
|---|---|
| Meanings | 2 |
| Categories | Business & Finance, Law & Legal |
CDS has two meanings. It stands for Credit default swap (bond & Fixed-Income) or Controlled dangerous substance (criminal law).
Meanings of CDS at a glance
| # | CDS stands for | Context |
|---|---|---|
| 1 | Credit default swap | Business & Finance › Bond & Fixed-Income |
| 2 | Controlled dangerous substance | Law & Legal › Criminal Law |
1. Credit default swap
Business & Finance · Bond & Fixed-Income Abbreviations
Derivative contract that works like insurance against a borrower's default: the buyer pays a periodic premium, and the seller compensates the buyer if a specified credit event, such as bankruptcy or a missed payment, occurs. CDS spreads are a market gauge of credit risk.
Example: Five-year CDS on the bank widened to 300 basis points as depositors pulled funds.
Credit default swaps were developed at J.P. Morgan in the 1990s and played a central role in the 2008 crisis through AIG's huge sales of protection. Since then most index CDS trades have been centrally cleared. Committees of dealers and investors decide whether a credit event has occurred.
2. Controlled dangerous substance
Law & Legal · Criminal Law Abbreviations
Term used in the drug laws of Maryland, New Jersey, Oklahoma and some other states for drugs regulated by schedule, equivalent to "controlled substance" in federal law. Charges such as "possession of CDS" appear on dockets and police reports.
Example: He was charged with possession of CDS after troopers found pills without a prescription in his console.
Federal law and most states say "controlled substance", following the Controlled Substances Act of 1970, which sorts drugs into Schedules I through V. Maryland and New Jersey legalized adult cannabis use in the 2020s, removing many marijuana cases from CDS dockets.
Related abbreviations
More bond & Fixed-Income abbreviations
- ABS – Asset-backed security
- AT1 – Additional Tier 1 capital
- BTP – Buono del Tesoro Poliennale (Italian multi-year Treasury bond)
- CDO – Collateralized debt obligation
- CDX – Credit default swap index
- CLO – Collateralized loan obligation
- CMBS – Commercial mortgage-backed security
- CMO – Collateralized mortgage obligation
See all 42 bond & Fixed-Income abbreviations →
More criminal law abbreviations
- ARD – Accelerated Rehabilitative Disposition
- B&E – Breaking and entering
- BOP – Federal Bureau of Prisons
- BW – Bench warrant
- CI – Confidential informant
- CO – Correctional officer
- COA – Certificate of appealability
- cr – Criminal (case-type code)
See all 46 criminal law abbreviations →
This entry is for general education and is not legal advice. Abbreviation use varies between institutions; always confirm in context.