Glossary

A glossary is a dictionary of terms specific to a certain subject. A biology textbook might have a glossary in the back, so you can quickly look up all those technical words.

Loan Credit Default Swap (LCDS)

Updated on 2023-08-29T11:57:13.817429Z

A loan credit default swap or LCDS is a kind of credit derivative in which an underlying loan’s credit exposure is swapped among two groups.


The structure of LCDS is analogous to regular credit default exchange, with the exception of the underlying reference obligation restricted strictly to syndicated secured loans, instead of any kind of corporate debt.