The
credit derivatives market has experienced tremendous growth
in recent years, and this growth is set to continue. According
to the 2007 ISDA Operations Benchmarking Survey, credit derivatives
trading volumes have increased by around 76% over the past
year (source: www.isda.org).
To some extent this growth has resulted in more standardization
and increased liquidity in the markets, particularly concerning
Credit Default Swaps (CDSs), but at the same the breadth of
credit instruments traded is widening at a startling rate.
Increased volumes and newly tradable credit instrument types
represent an exciting business opportunity in this area, but
with this prospect comes increased risk. In order to stay
dynamic in these escalating markets, it is necessary to have
access to accurate data, powerful analytics and advanced business
knowledge in the credit arena. Lombard Risk meets these requirements,
providing extensive and professional valuation and risk management
systems for all credit derivatives processes:
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