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How Credit Default Swaps Are Used: CNBC Explains

Thursday, 4 Aug 2011 | 6:02 AM ET

Credit default swaps, also known as CDSs, gained notoriety in the 2008 financial crisis when firms such as AIG found themselves overexposed to credit risks. What are the use cases for a CDS and how should they be understood? Salman Khan of the Khan Academy explains.