Total return swaps based on corporate bond indexes could compete with exchange-traded funds (ETFs) that track the indexes, according to industry participants. The size of the market for total return swaps on these indexes is estimated to be roughly $500 million a week across Europe and the US, says Denis Gardrat, head of credit derivatives structuring for Europe, the Middle East and Africa at BNP Paribas in London.
The corporate credit ETF market is huge in comparison. In October 2012, corporate
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