Dabbling with credit

The credit derivatives market may be booming in Asia, but corporates have mostly remained on the sidelines. However, some have incorporated credit derivatives into complex liability structures to cut funding costs. Nick Sawyer reports

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Australia’s credit derivatives market has had a pretty successful year. Annual turnover is still relatively low in global terms, at just A$52 million ($40.47 million), but that figure represents a whopping 133% surge over the 12-month period to end-2003, according to the Australian Financial Markets Association. The cause of this emphatic turnaround can be placed at the door of the country’s institutional and retail investors. Eager for higher returns, they’ve been snapping up

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Credit risk & modelling – Special report 2021

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