CDS and IR swap are very similar in many aspects. However one must also be aware of where the analogy ends. As an example, one can lock in the profit of a pay-fixed swap (when swap rate goes up) by entering into a receive-fixed swap, IF THE SWAPS ARE RISK-FREE. Alternatively she could unwind the position (selling the swap) and collect the present value of the cash flow.
For CDS things are more complicated. Unwinding the position would still let the investor cash-out immediately. Entering into an opposite swap, however, does not guarantee the cash flow anymore because there is the possibility of default, which would terminate the cash flows from both positions (the original protection buyer and the opposite seller).
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