Under a CDS, one party seeks to protect itself against the default of a bond issuer by paying an annual sum—the equivalent of an insurance premium—to someone else who wants to take on the risk.

在信用违约掉期条款下，一方为了保护自己免受国债发行者债务违约的风险，支付一定年费（相当于保险费）给第三方，让第三方来承担相应的风险。

youdao

That has driven down the liquidity premium in the bond market (and pushed yields lower).

那已降低了债券市场上的流动性溢价（使得债券的收益率更低）。

youdao

If no catastrophes occur over the designated loss level during the life of the bond, investors get back their principal and a premium.

如果在债券存续期内没有发生超越制定损失程度的大灾难，投资者可以取回本金以及取得高溢价。

youdao

Thanks to the magic of bond-premium amortization, that maneuver reduces your taxable interest income over the life of the bonds.

FORBES: Sidestepping Taxes

It often makes tax sense to sell a bond at a premium and pay capital gain taxes on it.

FORBES: Tax Trick For Treasury Owners

The reason is that someone buying a high-coupon bond at a premium is entitled to write off the premium over time as a deduction against the interest income.

FORBES: Magazine Article