BNP Paribas recently closed a five-year constant maturity credit-default swap trade in Asia, a product which is still in its early days in the region. Cedric Podevin, managing director and Asia-Pacific head of credit derivatives structuring in Hong Kong, said the firm completed a Philippines sovereign credit CMS play on the spread between one and five years. "The client benefits on the trade if the curve remains steep," said Podevin. Market officials have noted CMCDS deals are still a new concept in the region, though more end users are becoming comfortable with the structures.
