U.S. broker Axiom Global Partners has executed a USD1 billion single credit derivatives trade, believed to be the largest ever trade of its kind. Wesley Wang, partner in New York, said the trade was referenced to the North American investment grade iBoxx index. He declined to name the counterparties.
The trade came hot on the heels of of an agreement last week in which the iBoxx indices will be merged with TRAC-X globally. With all the major dealers planning trading the same product, larger trades are now more feasible, noted Wang. The average size of trades, which currently stands at USD50-100 million, is also likely to grow as the market continues to become more liquid, he added.
