Credit derivatives set to hit $10 trillion by 2007, says Deutsche’s Misra

The credit derivatives market is set to hit $10 trillion in notional value within five years, with the number of actively traded credit default swaps set to double by 2007 to 600, according to Deutsche Bank’s global head of integrated credit trading Rajeev Misra.

Speaking during a keynote address at Risk’s Credit Risk Summit Europe 2003 in London this morning, Misra said Deutsche Bank had commissioned consultants McKinsey to analyse the potential growth of the market. McKinsey’s findings predicted the credit derivatives market could grow to $10 trillion, based on strong demand from medium-sized banks to hedge their exposures to medium-sized corporates.

Growth could be even higher – $15 trillion by 2007 – if the high-yield credit derivatives market takes

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