The credit derivatives market in Asia has been surging in terms of breadth in recent weeks. "There's a lot more names than just the usual ones that trade like Hutchison Whampoa, the Philippines and Korea," said a credit trader at a bulge bracket house. Several names including, Hana Bank, Shinhan Bank and Koram Bank, have started to become regular features of the market.
Part of the reason for the extra liquidity is a growing interest in Asian names from global investors. "Credit spreads are favorable compared to the U.S.," said a dealer in Japan. Other traders, however, say the widening credit universe is to be expected. "It's natural market evolution," said Feng Gao, head of credit derivatives trading in the integrated credit trading group at Deutsche Bank in Singapore.
