Derivatives trading up 113% in 2006

Fitch’s Global Credit Derivatives report shows 2006 trading increased by 113% over the $23.4trn in 2005 but concern grows about how the market would deal with an eventual downturn. James Batterman, senior director of Fitch, says: “Leading the charge for the growth in the credit derivatives market are the traded indices, which, for the first time, surpassed single named credit default swaps in volume last year, even though single name usage itself continued to expand rapidly.” The survey shows the credit derivatives market is expected to grow. The report cites collatorised debt obligation...