BlackRock, Pimco Push for Credit Swaps Clearing Amid Junk Rout
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BlackRock Inc., Pacific Investment Management Co. and BlueMountain Capital Management are among a band of 24 investors aiming to revive a shrinking part of the $13 trillion credit-default swaps market.
The investor group, which also includes Apollo Global Management LLC and Citadel LLC, said in a statement they would move to settle credit-default swaps transactions linked to individual companies and countries through clearinghouses. The derivatives allow investors to hedge against losses and are an important tool at a time when corporate failures are rising and money managers are increasingly worried about a meltdown in some parts of the debt markets.