Pushing the boundaries

The boundaries between structured credit and fund derivatives are increasingly blurring. A variety of products has emerged that combine credit derivatives structuring with fund technology, and more are set to follow. By John Ferry

The credit derivatives market has always liberally borrowed product ideas from the equity and interest rate derivatives markets. One of the more recent manifestations of this trend has been the move by credit structurers into fund derivatives. The result so far has been an impressive array of creative offerings.

"We are at the frontier of two businesses at the moment, and there is something of a