People Like Derivatives

This article appears courtesy of Institutional Investor

Source: InstitutionalInvestor.com

Two new reports show that the derivatives market continues to grow apace.

In its third annual global credit derivatives survey, released this morning, Fitch Ratings reports that the market in credit derivatives it surveys grew 86% $5.3 trillion.

“The market continues to grow at a phenomenally fast rate,” Fitch analyst Roger Merritt said. “And we’re not necessarily capturing the whole market, so the actual size of the market might be anywhere from $8 trillion to $12 trillion, which means it might actually be bigger than the corporate bond market.