Isda: 38% rise in credit derivatives notional in first half of 2007

The notional amount outstanding of over-the-counter credit derivatives grew by 32% in the first six months of the year, reaching $45.46 trillion in mid-2007, according to the International Swaps and Derivatives Association.

Isda’s 2007 mid-year market survey of OTC credit derivatives, which included single-name credit default swaps (CDSs), CDS indexes, baskets, and portfolios, found that the total notional had grown by around 75% during the 12-month period ending mid-year 2007.

By historical standards, growth over the most recent surveyed period was modest. The annual growth rate for credit derivatives for the 12-month period ending mid-2006, for instance, was 109%

Elsewhere, the notional amount outstanding of interest rate derivatives, including interest rate swaps, options and cross-currency swaps, grew by around 38% during the 12-month period ending mid-2007, to reach $347.09 trillion

The 12-month growth rate for equity derivatives was around 57%, reaching $10.1 trillion as of mid-2007