I have a basic question that's causing me some confusion. I see discussion of a "CDS spread," defined as the cost of protection. Are these the same as a bid-ask spread? Is there any relation between the two, if not? Thanks.
Regarding the terminology, there is no relation between CDS spread and bid/ask spread. The term spread in this sense refers to the related difference (spread) of the effective (credit risky) interest rate and the "risk free" rate (also see "credit spread").