Companies with credit default swap (CDS) positions on their debt may be more likely to default. A study looked at U.S. nonfinancial firms from 2001-08 and found that firms with CDS had a higher probability of default in the later years. These firms also had a higher expected default frequency. This suggests that conflicts between creditors and debtors could increase the chance of default. Additionally, firms with CDS faced more selling pressure during financial turmoil, leading to higher distress.