Isda survey finds credit derivatives market soaring

The credit derivatives market grew 37%, with total notional outstandings reaching $2.15 trillion, in the first six months of last year, according to the latest market survey from the International Swaps and Derivatives Association.

“The continued pace of growth in the over-the-counter derivatives markets during times of economic and political uncertainty demonstrates their importance as a mechanism for mitigation and dispersion of the risks our members encounter in the course of their business,” said Bob Pickel, Isda’s chief executive. “The acceleration in use of credit derivatives in particular is testimony to the effectiveness of this product set in the redistribution of credit exposures to those firms desirous of adopting them.”

Notional outstanding volume in interest rate and currency derivatives increased 20%, to $99.83 trillion, in the first half of last year, said Isda. Equity derivatives outstanding volumes rose to $2.45 trillion, up 6%.