Credit derivatives and structured credit: the nascent markets of Asia and the Pacific

Nascent markets for credit derivatives and structured credit in Asia and the Pacific were poised for rapid growth when the global financial turmoil hit. While there has been no significant deterioration in the quality of the underlying names, credit markets in the region have been swept up in the global widening of spreads and aversion to structured finance.

JEL classification: G12, G13, G15.