Derivatives: Credit default swaps – The revival

In Industry Insights by Abdullah Hiyatt

Single-name CDS trading has sparked interest as it reached a five-year peak of $1.1 trillion in Q1 2023. This surge indicates heightened liquidity due to credit concerns. Electronic trading growth and increased transparency are improving liquidity and efficiency in the CDS market. Capital market participants are applying the latest cash market models to the swaps landscape for better liquidity and pricing. More and more, they are adopting automation and API integration for efficient trading.

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