Bonds News

Emerging market credit default swaps hit record $521 bln in 1st qtr - report

NEW YORK, June 8 (Reuters) - Trading volume for emerging market credit default swaps (CDS) rose 3% in the first quarter to a record $521 billion from $505 billion a year earlier, according to a survey of 12 major dealers released on Monday.

The largest volumes were for Brazil at $49 billion and China at $48 billion, followed by Mexico and Turkey with $37 billion each. Total volume rose 20% from the final quarter of 2019.

CDS in Mexico’s national oil company Petróleos Mexicanos, or Pemex, accounted for the biggest volume among corporate contracts at $2 billion. Pemex lost its investment grade rating earlier this year.

EMTA, the emerging markets debt trading and investment industry trade association, said quarterly volume was the highest since it began collecting the data in 2009.

Participants were asked to report their CDS volumes on 21 emerging market countries and nine emerging market corporate issuers. (Reporting by Rodrigo Campos; Editing by Richard Chang)