Creditworthiness of Underlying Entity: A company's financial health directly impacts its CDS price. Higher default risk increases CDS price.

Market Liquidity: Higher liquidity typically leads to tighter bid-ask spreads and potentially lower CDS prices due to ease of trading.

Overall Market Sentiment: Broad economic downturns or negative investor sentiment can raise CDS prices due to increased perceived risk.

Supply and Demand: Higher demand for CDS protection on a specific entity increases its price, while higher supply decreases it.

Interest Rates: Rising interest rates can impact a company's ability to repay debt, potentially increasing CDS prices.

Industry Conditions: Challenges within the specific industry of the underlying entity can affect its CDS price.

Macroeconomic Factors: Economic growth, inflation, and unemployment levels influence a company's financial stability and CDS price.

Regulatory Changes: New regulations impacting the underlying entity or the CDS market itself can affect its price.

Alternative Investments: Availability and attractiveness of other investment options influence demand for CDS and thus its price.

Counterparty Risk: Concerns about the CDS seller's ability to pay out in the event of a default can increase CDS prices.