Recovery Swap

Recovery Swap

In finance, recovery swaps, recovery locks, or recovery default swaps (RDS) are derivative contracts related to credit default swaps, and reference a bond issuance as its underlying. They are designed to provide a hedge against the uncertainty of recovery in default.

The International Swaps and Derivatives Association does not keep records on the size of the recovery swap market because there has not yet been sufficient member demand.

Read more about Recovery Swap:  Terms, Connection To Fixed Recovery CDS

Famous quotes containing the words recovery and/or swap:

    It’s even pleasant to be sick when you know that there are people who await your recovery as they might await a holiday.
    Anton Pavlovich Chekhov (1860–1904)

    If we should swap a good library for a second-rate stump speech and not ask for boot, it would be thoroughly in tune with our hearts. For deep within each of us lies politics. It is our football, baseball, and tennis rolled into one. We enjoy it; we will hitch up and drive for miles in order to hear and applaud the vitriolic phrases of a candidate we have already reckoned we’ll vote against.
    —Federal Writers’ Project Of The Wor, U.S. public relief program (1935-1943)