Hedging spurs growth in credit swaptions

ist-8591276-chartgraph
Credit swaptions: a hedge against volatility

Credit swaptions are increasingly popular with market participants looking for hedges – a trend that is likely to be maintained in 2011, according to dealers.

With similar declines in trading volumes across credit derivatives, credit swaptions took a knock after the bankruptcy of Lehman Brothers in September 2008. But since the second half of 2009, dealers say trading volumes in the product have picked up, with some estimating a doubling of notional for every six-month period since then.

One New

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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: