Credit derivatives house of the year: Credit Suisse

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James Howard, Eraj Shirvani, Jonathan Moore and Emmanuel Parrenin

Any hedge fund would be delighted with a near-50% return on equity. For the credit business of a Swiss bank, it’s not just an excellent result – in pure revenue terms, the best of Credit Suisse’s six fixed-income subdivisions last year – but also one that challenges conventional wisdom.

The unit has been through major surgery – exiting correlation trading, reducing the gross notional size of its flow book by 45% thanks to unwinds of thousands of credit default swaps (CDSs), and roughly halving i

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