youdao

A CDS works like a fire-insurance policy: the holder pays a regular premium, but if the house burns down there is a big payoff.

一个信用违约互换就象一张火灾保险单：持有人定期支付保险费，但是假如房屋被烧毁，就有一笔大额偿付。

youdao

Under a CDS, one party seeks to protect itself against the default of a bond issuer by paying an annual sum—the equivalent of an insurance premium—to someone else who wants to take on the risk.

在信用违约掉期条款下，一方为了保护自己免受国债发行者债务违约的风险，支付一定年费（相当于保险费）给第三方，让第三方来承担相应的风险。

youdao

Competing traders in the CDS market could force the bank to pay an even higher premium to unwind its position now that everyone knows how badly JP Morgan wants to cut loose.

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While there are cheaper shelf systems from Phillips, Koss (nasdaq: KOSS - news - people) and RCA that can play MP3 CDs, the SonicBlue system is stylish enough to elicit the premium for now.

FORBES: Magazine Article