Credit derivatives innovations essential for health of credit market

Janjuah, speaking at a credit media briefing in London today, said he was pessimistic about the prospects for the credit markets in 2004, after the “golden year” of 2003, which saw debt in the US rise to the highest levels ever – 300% of GDP.

William Ross, global head of asset-backed securities research at the Dutch bank, also speaking at the event, said structured products were crucial in such times of transition, as they can be designed to flourish in any given conditions. He said collaterised debt obligations would continue to be favoured by banks, as they tend to make money, but added that the demand for these products still falls well short of supply.

He also sounded a note of caution on rising interest rates, further developments in Basel II and mounting CDO liabilities posing significant challenges in the coming year.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here