Client-driven credit default swaps business dries up in Japan

One dealer in Tokyo said there was a significant lack of client interest in buying and selling credit protection, with trading mainly limited to activity among dealers. Spreads nevertheless tightened across the board. “In the absence of any other factor, Japanese credits are following US and European credit markets, which have done well,” the trader added.

Japanese technology stocks rallied earlier this week following the upturn in US equities in the technology sector, and general market sen