Surging credit derivatives market proves key as a price indicator

Default swaps are increasingly being used to gude straight financing

Strip away the hyperbole characteristic of all financial markets and you will find two handrails guiding the growth of European credit investment: six-month Libor and five-year default swap rates.

The first, Libor, is increasingly well recognised as a truer guide than government bond yields to broad capital markets pricing.

WSJ Logo
Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a BillionaireExternal link

Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a Billionaire