The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Dealer claims credit options upsurge

But liquidity – as yet limited to indices – has still to take off on single names.

Have credit options taken off and are they set to be the Next Big Thing in the credit derivatives market? The answer rather depends on who you talk to.

For Daniel Berman, head of European credit product management at JPMorgan, the answer is definitely yes. JPMorgan has now traded more than €20 billion in option notional this year in Europe, which is between five and 10 times 2004's level, depending on the sector.

"We are seeing an increasing account base, and a broader range of investors interested in learning about product dynamics and options strategies," he says. "Options on government bonds or equities are relatively standard products in those markets, and what we see now is really just the same product range becoming liquid in credit."


He adds that users that were once doing one or two deals a week are now doing 15 or 20. The volumes are much greater than the few hundred million a week that was seen last year, and growth is described, predictably, as exponential.

The explosion in the credit options market has happened over the last six to nine months, says Berman, but the real catalyst, in this as in so many areas of credit derivatives, was the launch of the unified iTraxx credit indices in June of last year.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree