The case for constant maturity default swaps
The market for constant maturity credit default swaps is not liquid and a growing number of dealers believe it never will be. Fans maintain the product has a real future in the retail structured product business. By Rachel Wolcott
The credit derivatives business is a seemingly inexhaustible developer of new ideas. And constant maturity credit default swaps (CMDSs) are held up by the major players as a shining example of their market’s progress.
Credit derivatives notionals grew by 44% in the first half of 2004 to $5.44 trillion, according to the International Swaps and Derivatives Association. This growth owes a
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