The end game

Credit derivatives have recorded strong growth over the past few years, but the market is still waiting for institutional investors to use the product in earnest. Nick Sawyer reports

If you talk about Australia’s credit derivatives market, you tend to elicit mixed reactions depending on whom you talk to. Some bankers point to yet another surge in trading volumes last year, along with the flurry of new entrants now dipping their toes into the interbank market. Others bemoan the continued absence of institutional investors and the lack of volatility in Australia’s 30-odd regularly quoted names. Asset managers, on the other hand, talk enthusiastically about the