of Credit Derivatives
Derivatives: Market Info and awareness
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Market data The Bank of Japan statistics for second half of 2001 show credit derivatives growing 22% - see news report here.
Credit derivatives were recognised by law as a financial instrument in Japan in November 1998. There was some activity before, say bankers, as Japanese credits were traded offshore in London and New York, and used by Japanese institutions but it was a very small market in Tokyo in the mid 1990s.
In 1997, Japanese banks hedging portfolios started using credit derivatives to reduce BIS risk assets. Japanese banks interpreted credit derivatives as bank guarantees. BIS-related transactions went from zero to billions between '97 and '98.