Volumes of credit default swaps (CDSs) traded rose 81% in 2007 to a total notional outstanding of $62.2 trillion, according to figures collected by the International Swaps and Derivatives Association (Isda).
In its 2007 Market Survey, Isda said equity derivatives notionals did not grow in the second half of the year, ending 2007 at $10 trillion. Interest rate derivatives grew to $382.3 trillion from $347.1 trillion at mid-year and $285.7 trillion at the end of 2006.
The total notional value of $454.5 trillion across asset classes equates to a gross mark-to-market value of $9.8 trillion and a credit exposure after netting out of $2.3 trillion.
Isda's chief executive, Robert Pickel, said the results made it more important to "reinforce the operational infrastructure to enable scalable growth and improve liquidity for the continued development of these important risk management tools".See also:
More on Credit Derivatives
Banks can use maths - rather than special chips - to boost computing speed
Analysts split on crucial questions for CDS protection holders
No ambiguity in 2014 contracts, but questions exist over 2003 vintage
Standard & Poor's found to owe duty of care with CDO ratings
Sign up for Risk.net email alerts
Nominated for two technology awards
Nominated for post trade technology award
Sponsored webinar: Collateral and counterparty tracking
Isda directors warn on fragmentation, access and liquidity - but expect problems to pass
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.
Updating your subscription status
Risk iPad and iPhone Apps