OK, I asked ChatGPT to explain this, and here's my current understanding. A Credit Default Swap is essentially a type of insurance issued by the banks to outsid

OK, I asked ChatGPT to explain this, and here's my current understanding. A Credit Default Swap is essentially a type of insurance issued by the banks to outside parties who have loaned money to other outside party. If the borrower defaults then the bank would pay out money to the lender. So a high number of credit default swaps would indicate that the bank could potentially have to pay out a lot of money in these "insurance payments" if other parties go bankrupt which could deplete their funds. Is this about right?