The beginning of every new year in the capital markets is celebrated traditionally with a surge in debt issuance and 2010 does not appear ready to break with tradition. After the deluge of fixed-income business seen last year this might seem a little surprising but the stars are correctly aligned for a busy few weeks.

This is a period in which traditional rate and currency derivatives usually command great attention. These instruments have been around for a long time - more than 25 years - but they are still fundamental to the business of end-user liability management. Recent surveys of derivatives usage show the volume traded of interest-rate swaps far outweighs that of the newcomers to the scene, such as credit default swaps or equity derivatives.