This paper analyzes the credit default swaps (CDS) market from 2019 to the first half of 2024, focusing on trends in single-name CDS and index CDS market activity. Over this period, total CDS market activity reached a high point of $38.7 trillion in 2022, driven primarily by index CDS.
Single-name CDS activity was at its greatest in the first half of 2023, as market participants sought to manage specific credit exposures and protect against anticipated changes in the creditworthiness of individual entities, especially in the banking sector. Although it fell in the first half of 2024, single-name CDS activity remained above 2022 levels, reflecting sustained demand for credit risk protection.
Index CDS trading peaked in 2022 as market participants hedged against broader market instability during a period of heightened uncertainty. As macroeconomic conditions stabilized and central banks moderated their rate hikes, demand for index CDS declined in 2023 and the first half of 2024, but activity remained above 2021 levels.
Click on the attached PDF to read the full report.
Documents (1) for CDS Market Dynamics: Analyzing Trends in Single-name CDS and Index CDS Market Activity
Latest
ISDA AGM Studio: Antonio Corbi and Fabio Fabiani, EY
Fabio Fabiani, partner at EY, speaks with Antonio Corbi, head of accounting and tax services at ISDA, on the International Accounting Standards Board’s dynamic risk management proposal and the application of the Common Domain Model to automate reporting and compliance.
ISDA AGM Studio: Sarah Breeden, Bank of England
Sarah Breeden, deputy governor for financial stability at the Bank of England, speaks to ISDA CEO Scott O’Malia about some of the headwinds facing financial markets in 2025, and how policymakers can address perceived vulnerabilities in non-bank financial intermediation.
ISDA AGM Studio: Tom Jasper and Eric Litvack
ISDA's 40th anniversary was a key theme of this year's Annual General Meeting. To mark this milestone, Nick Sawyer, ISDA's global head of communications, talked to Tom Jasper, managing partner at Manursing Partners, who established and led the interest rate...
ISDA AGM Studio: Roy Choudhury and Ido de Geus
Roy Choudhury, managing director and senior partner at Boston Consulting Group, and Ido de Geus, head of fixed income at PGGM Investments, talk to Nick Sawyer, ISDA’s global head of communications, about the uses and value of over-the-counter derivatives.