Credit derivatives up 44% to $5.44 trillion, says Isda

Credit derivatives notionals stood at $5.44 trillion at the end of June, a jump of 44% compared with the end of last year, according to an International Swaps and Derivatives Association (Isda) survey.

The results from Isda’s mid-year 2004 market survey indicate that growth in the credit derivatives market has marginally accelerated. During the second half of last year, the market rose 40.5% to $3.78 trillion. “The sharp growth in credit derivatives reflects the increasing utility and application of this important product set,” said Robert Pickel, chief executive of Isda.

Growth in interest rate derivatives was less spectacular, with notional outstanding rising by almost 16% to $164.49 trillion, Meanwhile, equity derivatives grew by 9.7% to $3.79 trillion.

The survey records the results from major dealers of derivatives products: 100 firms provided responses on credit derivatives, 120 on interest rate derivatives and 106 on equity derivatives.