Cost to cover default risks goes up for banks SECTIONS Share Synopsis Credit Default Swaps (CDS), an insurance against default, tied to ICICI Bank and State Bank of India are now at elevated levels that were last seen during the peak of the first wave of coronavirus. The CDS rates seem to discount the market-beating earnings of private lenders for the fourth quarter. Agencies The sentiment in the CDS market slightly improved on Tuesday with the gauge falling a few basis points after the international community started sending Covid assistance to New Delhi. The cost to insure against a potential default by Indian banks has risen about a fifth in the past two weeks as various states imposed local curbs on mobility and businesses.