The launch of two credit derivative product companies (CDPCs) in less than three months indicates that activity in this nascent market is poised finally to accelerate. But the nature of its participants could change fundamentally as the market matures. The early players in the space – Primus Financial Products and Athilon Capital Corp – were standalone entities with private equity backing. But the new breed of CDPC is far more likely to have institutional sponsorship.
Several standalone entities have been linked with CDPC plans: Deerfield Capital Management and Aladdin Capital Management to name but two. But...
