Credit derivatives grow by 52% in first-half 2006, says Isda

Robert Pickel, chief executive officer of Isda, said the figures showed that “the slight slowdown in the second half of 2005 was just a breather, as the growth has well over doubled from mid-year 2005.”

The year-on-year credit derivatives growth rate of 109%, from a mid-year 2005 figure of $12.43 trillion, rises above significant growth in other asset classes. The notional outstanding amount of interest rate derivatives grew by 18% to $250.8 trillion, equivalent to year-on-year growth of 25%.

Interest rate derivatives volumes, which include interest rate swaps, options and cross-currency swaps, grew by 6% in the second half of 2005, following 10% growth in the preceding six months.

The notional outstanding volume for equity derivatives, comprising equity swaps, options and forwards, grew steadily by 15% to $6.4 trillion, representing year-on-year growth of 32%.