Credit derivatives professionals slam IAS
In the survey, conducted every two years, 47% of respondents thought IAS 39 would have a negative impact on the synthetic market, compared with 37% who were neutral and only 16% that were positive. IAS’s impact on the vanilla credit default market was less controversial, with 26% believing it would be negative, 37% neutral and 16% positive.
Responses to the Basel II bank capital adequacy initiative were more popular, with 60% of respondents believing it would be beneficial for the vanilla market and 10% negative. However, the corresponding figures for synthetic credit were 35% and 30%, respectively.
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