Growth in credit derivatives at 29%

Notional volumes in the credit derivatives market now stands at US$3.58 trillion, representing year-over-year growth of 29%, according to trade body the International Swaps and Derivatives Association.

Isda said the credit derivatives market – which for its survey consisted of cedit default swaps, baskets and portfolio transactions – grew at a rate of 33% in the second half of last year and 25% in the first. The equity derivatives market has also witnessed strong growth, where notional outstanding volume – consisting of equity swaps, options and forwards – grew 21% to stand at US$3.44 trillion.

“The accelerated growth of both the credit and the equity derivatives markets demonstrates the value they provide firms seeking to transfer these types of risk,” said Robert Pickel, Isda’s chief executive.

Isda said 120 companies responded to its survey.