Nascent Credit Index Wins 20% Of Japanese Volumes
The CJ 50, an index of 50 Japanese credit-default swaps, has mushroomed to account for around 20% of credit trading volumes just weeks after its launch in the interbank market. BNP Paribas, Bank of Tokyo-Mitsubishi and Goldman Sachs set up the index, but five more firms including Bear Stearns and UBS now make markets in the instrument. Stephane Delacote, head of credit trading at BNP in Tokyo, expects 10 firms to be trading the index by year end. This will boost volumes to around 25% of the market, added Delacote.
Typical ticket sizes are JPY500 million-1 billion (USD4.23-8.46 million), noted Delacote.