The credit derivatives market

Wed Mar 28, 2007



The credit derivatives market has grown exponentially in recent years, with both new innovations and increasing standardisation. Panellists debate where the innovation will lead next, including prospects for the first exchange-traded credit contract

Neil Wilson, EuroHedge
Why has there been such explosive growth in the credit derivatives market in recent years? Will it continue - and in what sort of ways?

Mehtap Dinc, Eurex
When we started to look at the credit market a few years ago, the market was still quite small. Since then, the volumes have continued to increase and the credit derivatives market has experienced tremendous growth, especially during the last couple of years. The recent ISDA figures show an outstanding notional value in credit derivatives of around $17 trillion, coming from a level of $0.9 trillion in 2001. It has reached a stage which makes this market now interesting for an exchange-traded product.

 
Mehtap Dinc, Eurex

With...

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