Credit derivatives

Credit special report

Credit derivatives dealers haven’t had much to shout about in recent years – a large chunk of the market has virtually shut down, volumes are much reduced and liquidity has suffered. Last month, however, the publication of proposals on short selling by the European Commission (EC) was largely taken as good news by credit traders.

Market participants are interpreting looser than expected disclosure requirements for sovereign credit default swaps (CDSs) in the European Union as a tacit admission t