The structured credit market came on in leaps and bounds in 2005, shrugging off the May correlation trading book losses which had some predicting its demise. Correlation pricing skews became opportunities as structurers looked to diversify portfolios with asset-backed securities, commodities, or by leveraging highly-rated super senior tranches. Growing attention from regulators, however, has sparked a rush to shore up documentation and settlement problems.
Equity-linked investment products proved the main force for the growth of the equity derivative market, particularly with new regions such as China opening up. In Europe, there are signs institutional investors are also starting to catch on, and are marketing similar products to their pension fund and insurance clients.
Year In Review/Preview
Year In Review/Preview - ISDA Agenda
Year In Review/Preview - Asia