When Systematic Trading Comes to Credit Markets
Synthetic credit derivatives pave the way.
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A profound trend in credit markets has been borne out by the results of Citigroup Inc.'s latest survey of credit derivatives, with investors expressing continually growing interest in derivatives tied to corporate bonds.
While an overwhelming 94.5 percent of respondents to the survey said they expect corporate defaults to increase over the next year, the majority cited liquidity in the overall bond market as their top concern.