Barclays Sees Credit Derivative Volumes Extending Boom Into 2023

Credit derivatives trading volume hit record levels last year, and could stay high in 2023, as investors look for quick ways to build and cut exposure to corporate debt markets as their views on the economic outlook shift.

Average weekly trading volume for the main North American investment-grade credit derivatives index jumped to $229 billion in 2022, a 52% gain, according to Barclays Plc. For the main high-yield index, volume rose 54% to $63 billion, according to the bank’s analysis of Depository Trust & Clearing Corp. data. Both volume levels represent all-time-highs for figures going back to 2011. ...