Credit defaults swaps were invented in 1997 by a team working for JPMorgan Chase.
They were designed to shift the risk of default to a third party so that it become less punitive and largely exempt from regulatory ACTs.
The market size for CDS began to grow rapidly from 2003,by late2007 it was ten times as large as it had been four years previously.
Credit defaults swaps are by far the most widely traded creditderivatives product.
April 17, 2009CREDIT DEFAULTS SWAPS3
April 17, 2009CREDIT DEFAULT SWAPS