Product Code: ETC13305582 | Publication Date: Apr 2025 | Updated Date: Jul 2025 | Product Type: Market Research Report | |
Publisher: 6Wresearch | Author: Shubham Deep | No. of Pages: 190 | No. of Figures: 80 | No. of Tables: 40 |
According to 6Wresearch internal database and industry insights, the Global Credit Default Swap Market was valued at USD 3.5 Billion in 2024 and is expected to reach USD 5 Billion by 2031, growing at a compound annual growth rate of 6.90% during the forecast period (2025-2031).
The Global Credit Default Swap (CDS) Market is a significant segment of the financial industry where investors can hedge against the risk of default on bonds or loans. CDS contracts act as insurance policies, with one party paying a premium to another in exchange for protection in the event of a borrower defaulting. The market size of CDS contracts reached trillions of dollars before the financial crisis of 2008, leading to increased scrutiny and regulatory reforms to improve transparency and stability. Key players in the CDS market include major financial institutions, hedge funds, and institutional investors. The market continues to evolve, with advancements in technology and risk management practices shaping its future trajectory.
The Global Credit Default Swap (CDS) market is seeing a trend towards increased demand for protection against credit risk as volatility and uncertainty persist in the global economy. Market participants are increasingly turning to CDS as a tool for hedging credit exposures and managing risk in their portfolios. Opportunities in the market include the growth of synthetic CDOs, the development of standardized CDS contracts, and the expansion of clearing services to improve transparency and liquidity. Regulatory changes and advancements in technology are also shaping the market landscape, with a focus on enhancing risk management practices and increasing market efficiency. Overall, the Global CDS market presents opportunities for investors, financial institutions, and other market participants to navigate evolving market conditions and effectively manage credit risk.
The Global Credit Default Swap (CDS) Market faces several challenges, including counterparty risk, lack of transparency, and regulatory scrutiny. Counterparty risk arises from the potential default of one of the parties involved in the CDS contract, leading to financial losses. Lack of transparency refers to the complexity of CDS contracts and the difficulty in assessing the true risk exposure. This opacity can hinder market participants` ability to accurately price and assess risk. Regulatory scrutiny has increased post-2008 financial crisis, with regulators seeking to enhance oversight and reduce systemic risk posed by the CDS market. Additionally, concerns about market manipulation and the potential for CDS to amplify financial instability remain key challenges in the Global CDS Market. Addressing these issues will be crucial for ensuring the stability and integrity of the market.
The Global Credit Default Swap (CDS) market is primarily driven by factors such as market speculation, credit risk management, regulatory changes, and macroeconomic conditions. Investors and financial institutions use CDS contracts to hedge against credit risk, speculate on the creditworthiness of entities, and manage their overall portfolio risk. Regulatory changes, such as capital requirements and reporting standards, also influence the demand for CDS instruments. Additionally, macroeconomic conditions, including interest rates, inflation, and overall market sentiment, play a significant role in shaping the CDS market dynamics. Overall, the Global CDS market is driven by a combination of risk management practices, market speculation, regulatory environment, and broader economic factors.
Government policies related to the Global Credit Default Swap Market vary by country but generally focus on increasing transparency, reducing risks, and promoting stability in the financial system. Regulatory bodies such as the Commodity Futures Trading Commission (CFTC) in the United States and the European Securities and Markets Authority (ESMA) in Europe have implemented rules on reporting requirements, margining, and clearing of credit default swaps. Additionally, governments have introduced measures to enhance market surveillance, mitigate systemic risks, and protect investors. For example, the Dodd-Frank Act in the US includes provisions to regulate the trading of credit default swaps and increase oversight of the derivatives market. Overall, the aim of these policies is to prevent another financial crisis and ensure the proper functioning of the credit default swap market.
The Global Credit Default Swap (CDS) market is expected to see continued growth in the coming years, driven by factors such as increasing demand for risk management tools, volatility in global financial markets, and regulatory changes. The market is likely to expand as more investors seek protection against credit risk and as financial institutions use CDS contracts to hedge their exposure to potential defaults. However, the market also faces challenges, including concerns about counterparty risk, liquidity issues, and regulatory scrutiny. Overall, the CDS market is projected to evolve with advancements in technology and risk modeling, providing opportunities for market participants to better manage credit risk in a complex and interconnected global financial system.
In the Global Credit Default Swap Market, regional insights vary across different regions. In Asia, the market is characterized by increasing adoption of credit default swaps as a risk management tool by financial institutions and corporations. North America is a mature market with high levels of liquidity and trading volumes, driven by the presence of major financial institutions and a strong regulatory framework. Europe experiences a mix of developed and emerging markets, with regulatory changes impacting market dynamics. The Middle East and Africa region has seen limited adoption of credit default swaps due to regulatory constraints and a less developed financial infrastructure. Latin America shows potential for growth as market participants seek to manage credit risk more effectively amidst economic uncertainties and changing regulatory environments.
Global Credit Default Swap Market |
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 Global Credit Default Swap Market Overview |
3.1 Global Regional Macro Economic Indicators |
3.2 Global Credit Default Swap Market Revenues & Volume, 2021 & 2031F |
3.3 Global Credit Default Swap Market - Industry Life Cycle |
3.4 Global Credit Default Swap Market - Porter's Five Forces |
3.5 Global Credit Default Swap Market Revenues & Volume Share, By Regions, 2021 & 2031F |
3.6 Global Credit Default Swap Market Revenues & Volume Share, By Type, 2021 & 2031F |
3.7 Global Credit Default Swap Market Revenues & Volume Share, By Maturity, 2021 & 2031F |
3.8 Global Credit Default Swap Market Revenues & Volume Share, By Counterparty, 2021 & 2031F |
3.9 Global Credit Default Swap Market Revenues & Volume Share, By End User, 2021 & 2031F |
4 Global Credit Default Swap Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.3 Market Restraints |
5 Global Credit Default Swap Market Trends |
6 Global Credit Default Swap Market, 2021 - 2031 |
6.1 Global Credit Default Swap Market, Revenues & Volume, By Type, 2021 - 2031 |
6.1.1 Overview & Analysis |
6.1.2 Global Credit Default Swap Market, Revenues & Volume, By Single-name CDS, 2021 - 2031 |
6.1.3 Global Credit Default Swap Market, Revenues & Volume, By Index CDS, 2021 - 2031 |
6.1.4 Global Credit Default Swap Market, Revenues & Volume, By Bespoke CDS, 2021 - 2031 |
6.2 Global Credit Default Swap Market, Revenues & Volume, By Maturity, 2021 - 2031 |
6.2.1 Overview & Analysis |
6.2.2 Global Credit Default Swap Market, Revenues & Volume, By Short-term, 2021 - 2031 |
6.2.3 Global Credit Default Swap Market, Revenues & Volume, By Medium-term, 2021 - 2031 |
6.2.4 Global Credit Default Swap Market, Revenues & Volume, By Long-term, 2021 - 2031 |
6.3 Global Credit Default Swap Market, Revenues & Volume, By Counterparty, 2021 - 2031 |
6.3.1 Overview & Analysis |
6.3.2 Global Credit Default Swap Market, Revenues & Volume, By Banks, 2021 - 2031 |
6.3.3 Global Credit Default Swap Market, Revenues & Volume, By Insurance Companies, 2021 - 2031 |
6.3.4 Global Credit Default Swap Market, Revenues & Volume, By Corporations, 2021 - 2031 |
6.4 Global Credit Default Swap Market, Revenues & Volume, By End User, 2021 - 2031 |
6.4.1 Overview & Analysis |
6.4.2 Global Credit Default Swap Market, Revenues & Volume, By Investors, 2021 - 2031 |
6.4.3 Global Credit Default Swap Market, Revenues & Volume, By Hedge Funds, 2021 - 2031 |
6.4.4 Global Credit Default Swap Market, Revenues & Volume, By Governments, 2021 - 2031 |
7 North America Credit Default Swap Market, Overview & Analysis |
7.1 North America Credit Default Swap Market Revenues & Volume, 2021 - 2031 |
7.2 North America Credit Default Swap Market, Revenues & Volume, By Countries, 2021 - 2031 |
7.2.1 United States (US) Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
7.2.2 Canada Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
7.2.3 Rest of North America Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
7.3 North America Credit Default Swap Market, Revenues & Volume, By Type, 2021 - 2031 |
7.4 North America Credit Default Swap Market, Revenues & Volume, By Maturity, 2021 - 2031 |
7.5 North America Credit Default Swap Market, Revenues & Volume, By Counterparty, 2021 - 2031 |
7.6 North America Credit Default Swap Market, Revenues & Volume, By End User, 2021 - 2031 |
8 Latin America (LATAM) Credit Default Swap Market, Overview & Analysis |
8.1 Latin America (LATAM) Credit Default Swap Market Revenues & Volume, 2021 - 2031 |
8.2 Latin America (LATAM) Credit Default Swap Market, Revenues & Volume, By Countries, 2021 - 2031 |
8.2.1 Brazil Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
8.2.2 Mexico Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
8.2.3 Argentina Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
8.2.4 Rest of LATAM Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
8.3 Latin America (LATAM) Credit Default Swap Market, Revenues & Volume, By Type, 2021 - 2031 |
8.4 Latin America (LATAM) Credit Default Swap Market, Revenues & Volume, By Maturity, 2021 - 2031 |
8.5 Latin America (LATAM) Credit Default Swap Market, Revenues & Volume, By Counterparty, 2021 - 2031 |
8.6 Latin America (LATAM) Credit Default Swap Market, Revenues & Volume, By End User, 2021 - 2031 |
9 Asia Credit Default Swap Market, Overview & Analysis |
9.1 Asia Credit Default Swap Market Revenues & Volume, 2021 - 2031 |
9.2 Asia Credit Default Swap Market, Revenues & Volume, By Countries, 2021 - 2031 |
9.2.1 India Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
9.2.2 China Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
9.2.3 Japan Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
9.2.4 Rest of Asia Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
9.3 Asia Credit Default Swap Market, Revenues & Volume, By Type, 2021 - 2031 |
9.4 Asia Credit Default Swap Market, Revenues & Volume, By Maturity, 2021 - 2031 |
9.5 Asia Credit Default Swap Market, Revenues & Volume, By Counterparty, 2021 - 2031 |
9.6 Asia Credit Default Swap Market, Revenues & Volume, By End User, 2021 - 2031 |
10 Africa Credit Default Swap Market, Overview & Analysis |
10.1 Africa Credit Default Swap Market Revenues & Volume, 2021 - 2031 |
10.2 Africa Credit Default Swap Market, Revenues & Volume, By Countries, 2021 - 2031 |
10.2.1 South Africa Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
10.2.2 Egypt Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
10.2.3 Nigeria Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
10.2.4 Rest of Africa Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
10.3 Africa Credit Default Swap Market, Revenues & Volume, By Type, 2021 - 2031 |
10.4 Africa Credit Default Swap Market, Revenues & Volume, By Maturity, 2021 - 2031 |
10.5 Africa Credit Default Swap Market, Revenues & Volume, By Counterparty, 2021 - 2031 |
10.6 Africa Credit Default Swap Market, Revenues & Volume, By End User, 2021 - 2031 |
11 Europe Credit Default Swap Market, Overview & Analysis |
11.1 Europe Credit Default Swap Market Revenues & Volume, 2021 - 2031 |
11.2 Europe Credit Default Swap Market, Revenues & Volume, By Countries, 2021 - 2031 |
11.2.1 United Kingdom Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
11.2.2 Germany Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
11.2.3 France Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
11.2.4 Rest of Europe Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
11.3 Europe Credit Default Swap Market, Revenues & Volume, By Type, 2021 - 2031 |
11.4 Europe Credit Default Swap Market, Revenues & Volume, By Maturity, 2021 - 2031 |
11.5 Europe Credit Default Swap Market, Revenues & Volume, By Counterparty, 2021 - 2031 |
11.6 Europe Credit Default Swap Market, Revenues & Volume, By End User, 2021 - 2031 |
12 Middle East Credit Default Swap Market, Overview & Analysis |
12.1 Middle East Credit Default Swap Market Revenues & Volume, 2021 - 2031 |
12.2 Middle East Credit Default Swap Market, Revenues & Volume, By Countries, 2021 - 2031 |
12.2.1 Saudi Arabia Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
12.2.2 UAE Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
12.2.3 Turkey Credit Default Swap Market, Revenues & Volume, 2021 - 2031 |
12.3 Middle East Credit Default Swap Market, Revenues & Volume, By Type, 2021 - 2031 |
12.4 Middle East Credit Default Swap Market, Revenues & Volume, By Maturity, 2021 - 2031 |
12.5 Middle East Credit Default Swap Market, Revenues & Volume, By Counterparty, 2021 - 2031 |
12.6 Middle East Credit Default Swap Market, Revenues & Volume, By End User, 2021 - 2031 |
13 Global Credit Default Swap Market Key Performance Indicators |
14 Global Credit Default Swap Market - Export/Import By Countries Assessment |
15 Global Credit Default Swap Market - Opportunity Assessment |
15.1 Global Credit Default Swap Market Opportunity Assessment, By Countries, 2021 & 2031F |
15.2 Global Credit Default Swap Market Opportunity Assessment, By Type, 2021 & 2031F |
15.3 Global Credit Default Swap Market Opportunity Assessment, By Maturity, 2021 & 2031F |
15.4 Global Credit Default Swap Market Opportunity Assessment, By Counterparty, 2021 & 2031F |
15.5 Global Credit Default Swap Market Opportunity Assessment, By End User, 2021 & 2031F |
16 Global Credit Default Swap Market - Competitive Landscape |
16.1 Global Credit Default Swap Market Revenue Share, By Companies, 2024 |
16.2 Global Credit Default Swap Market Competitive Benchmarking, By Operating and Technical Parameters |
17 Top 10 Company Profiles |
18 Recommendations |
19 Disclaimer |