Credit derivatives still leading growth

Credit derivatives continued to be the fastest-growing sector of the over-the-counter derivatives market this year, despite rising numbers of early terminations.

According to the Bank for International Settlements (BIS), the six months to June 2006 saw a 46% increase in notional values of outstanding credit default swaps, to $20.3 trillion from $13.9 trillion in December 2005. This was despite increased activity by tear-up companies such as Stockholm-based TriOptima, which terminated almost $4