The credit derivatives market all but closed down last week after Italian dairy producer Parmalat defaulted. Traders said the first credit notices were served on Christmas eve, but lawyers and traders were still working out exactly what was happening when DW went to press on New Year's eve.
Traders said the market will not recover to its normal volumes until the holiday season is over and the Parmalat default is sorted out.
The only sign of life was the widening of U.K. retail spreads, in response to rumors of poor Christmas sales, noted one trader.
