The Role Of CDS In Mitigating Bankcruptcy Risk And How It Correlates With Legal Process In Indonesia

Credit Default Swaps (CDS) are derivative financial instruments that can be used to mitigate bankruptcy risk. In the context of the bankruptcy legal process in Indonesia. One of the main roles of CDS is as a tool for risk management (Rushdi, 2021). By using CDS, investors or creditors can protect themselves from the risk of default by the guaranteed party (reference entity). In the Indonesian context, where business and bankruptcy risks can be significant, CDS provides a way for market participants to manage these risks.