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.