In recent months, investors and the media have both raised concerns about the state of the credit market and potentially increased levels of risk developing within the financial system. Commentary has centred on several important issues:
nTight credit spreads
nSystematic concerns regarding the use of new credit derivative instruments including credit default swaps (CDS) and structured credit
nMore leverage in credit markets
nNew, untested investors in credit.
All of these issues are valid, and an