Credit derivative

Who, why, which or what are credit default swaps (aka a CDSs)?

• “Financial weapons of mass destruction” © Warren Buffett.
  
• “Credit risk mitigation techniques that fit into the Standardised Model of Credit Risk under the Basel II framework.” © Basel Committee on Banking Supervision.
• “Not insurance contracts” © Robin Potts QC.

Well, the world don’t move to the beat of just one drum.