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
Joint Response to FCA and HMT Consultations
On January 16, ISDA and UK Finance responded to both the consultation on streamlining the UK European Market Infrastructure Regulation (UK EMIR) intragroup regime by the Financial Conduct Authority’s (FCA) and the draft statutory instrument from His Majesty’s Treasury (HMT)....
Key Trends in OTC Derivatives Market H1 2025
The latest data from the Bank for International Settlements (BIS) over-the-counter (OTC) derivatives statistics shows an increase in notional outstanding of OTC derivatives during the first half of 2025 compared to the first half of 2024. Notional outstanding rose across...
Credit Derivatives Trading Activity Q3 2025
This report analyzes credit derivatives trading activity reported in Europe. The analysis shows European credit derivatives transactions based on the location of reporting venues (EU versus UK) and product type. The report also compares European-reported credit derivatives trading activity to...
Striking a Balance on EU Market Risk Capital
With US prudential regulators poised to publish a revised Basel III endgame proposal this year, and EU and UK regulators moving to finalize their own rules, ISDA is maintaining a laser focus on achieving a risk-appropriate capital framework that is...