It’s no secret there are difficulties in the credit default swaps (CDS) market—declining volumes, disputes over terms and other factors have bedeviled the space since the end of the global financial crisis. Less well-known are the efforts by financial innovators to...

The credit default swap (CDS), a financial product that has seen its volumes and outstanding notional decline for roughly a decade, credit default swaps have found their way back into the headlines—and for good reason. First, they have been at the heart of the kind of...