The article explores how the risk of a party failing to meet its obligations in Credit Default Swaps (CDS) is affected by the correlation between their default and the default of the CDS reference credit. The researchers use models that consider both default correlation and credit spread volatility, finding that these factors significantly impact the valuation adjustment needed to account for counterparty risk. By analyzing numerical examples, they show that changes in correlation and volatility can lead to variations in this adjustment, highlighting the importance of considering these risks in CDS pricing. Additionally, the study proposes a method for valuing contingent CDS on CDS, which are equivalent to credit valuation adjustments.