Junk-rated CDS clearing rates slid in H1 2024
Shift away from CCPs concentrated in sub-investment grade multi-name products
Global clearing rates for junk-rated credit default swaps (CDSs) continued to slide in the first half of 2024, driven by multi-name instruments, data from the Bank for International Settlements (BIS) shows.
As of end-June, $1.76 trillion in notional amounts of CDSs referenced sub-investment grade (IG) debt, with 62.1% cleared through central counterparties (CCPs). This was down 1.1 percentage points from end-2023 and 5.5pp from June 2023.
Multi-name CDSs, predominantly index products constituting
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