We know that a credit default swap is an insurance policy against credit events, but what constitutes a credit event? Well, first of all, it's important to remember that most CDSs are traded OTC or over the counter which means that the agreement between the two counterparties is very flexible. So in that OTC agreement, you could put down almost anything as a credit event if both parties agree so. However, the most standard credit events are listed on this slide. So for instance, a ratings downgrade would constitute a credit event. Another credit event could be non-payment or delayed payment of a fixed income obligation. So that is if the underlying credit fails to pay interest or principle on some of their bonds or loans. Going concern issues will be credit events. Has the underlying credit entered into receivership? Is it in liquidation? Is it under capital restructuring, or has it entered into a creditor's agreement of some sort? Another potential credit event could be a regulatory compliance breach or some kind of penalty. In any case, it's important to remember that the OTC contract is very flexible when it comes to the definition of credit events.