Credit Suisse Credit Default Swap: What is it and how did it happen?

The crisis at Credit Suisse (CS) is deepening, with credit default swaps at the bank nearing distressed levels, on the heels of the Silicon Valley Bank fallout. This trouble comes as the company continues to run into new problems, including issues with its financial reporting, and as the bank undergoes a three-year restructuring effort. Credit Suisse shares sank, bringing down European markets with it, and putting bank stocks under pressure. The KBW Bank Index (^BKX), which tracks 24 U.S. leading banks, has plummeted.

Yahoo Finance's Julie Hyman and Jared Blikre lay out what a credit default swap means, and how it happened to Credit Suisse.

You can watch the full clip here.

Key video Moments:

• 00:0:01 What a credit default swap is

• 00:00:29: Credit default swap curve inversion

• 00:01:07: Timeline of Credit Suisse events