citi-trades-first-credit-derivatives-in-malaysia

Citi trades first credit derivatives in Malaysia

A market-opening M$25 million CDS heralds the arrival of a local-currency credit derivatives market in Malaysia.
Citi and CIMB Bank have opened the Malaysian credit derivatives market after trading the first ringgit credit default swap CDS.

Malaysia boasts the most developed corporate bond market of any emerging economy, with about 1,700 outstanding issues, so this trade heralds the opening of a market with significant room for growth. It's difficult to put a number on that potential, says David Rosa, Citi's co-head of emerging markets credit trading, Asia-Pacific. but the trend is clear growth is exponential.

Indeed, the global CDS market grew from just $1 trillion at the end of 2001 to a whopping $26 trillion by mid-2006, according to International Swaps and Derivatives Association figures.

The development of a ringgit...
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