It could be end-to-end encryption, but there are indications that, particularly when routed through the Skype servers, the conversation could be visible or audible in unencrypted form.
On top of that, there’s really no reliable way to tell what kind of connection you have, or even if you do have a Skype-to-Skype connection, that the information still isn’t being mirrored to Skype’s servers somehow.
I think it’s extremely unlikely that your Skype calls are recorded …I’ll dive into a number of reasons I believe that to be the case.It’s not confirmed, but we have to assume that it is possible.The fact is, wholesale recording of Skype audio or video calls is simply unfeasible.
On one hand, Microsoft is pretty clear that instant messaging traffic (text) is sent to its servers as well as the recipient.
I don’t believe Skype (which is now owned by Microsoft) is recording your calls.