The article discusses how credit default swaps (CDS) are important tools in managing financial risks and making investment decisions. It looks at factors like credit spread, yield curve, and credit ratings to assess the stability of financial markets. The study shows that CDS spreads on sovereign securities can indicate the level of risk associated with investing in those securities. In the case of Ukraine, CDS spreads on sovereign bonds are closely linked to the country's economic stability and can influence decisions on investing in domestic securities. Overall, CDS play a crucial role in monitoring financial sustainability and guiding investment choices in today's economy.