Credit and interest-rate derivatives had a bumper year as investment and commercial banks couldn't get synthetic collateralized debt obligations out of the door quick enough and end users flooded back to the market to hedge interest-rate exposure on the back of eleven Federal Reserve rate cuts. In Europe, pension funds also joined the rush to hedge with interest-rate derivatives, driving up demand.
However, equity derivatives professionals' bonuses likely will be slimmer, reflecting the deleterious 12 months the cash equity markets suffered.
Year In Review: U.S.
Alternative Investments Benefit From Increased Demand
I-Rate Customers Follow Swap Curve To One-Stop Shopping Spree
Equity Stumbles As M&A, IPO Markets Idle
Credit Squares Up To Double Whammy
Market Reaches Truce Over Restructuring Europe Banks Enter Weather Derivatives Market European Credit Sees Defaults, Regulatory Changes, Innovation Hedge-Fund Linked Notes Gain Popularity In Equities Rate Cuts, Terror Attacks Fail To Spark FX Market European I-Rate Mart Dominated By Pension Fund Hedging Asia The Search For Yield Japan Develops As A Center For Weather Derivatives Pace Of Asian Credit Derivatives Growth Quickens Hedge Funds Raise Capital In Unfriendly Market Weak Equity Markets Drive Demand For Capital Protection Low Vol Prompts Vanilla-ization Of Asian FX Mart Quotes Of The Year
