The Development and Confinement Analysis on Credit Derivative Market in Asia

The credit derivative is one of the credit risk management tool and has grown up rapidly in the international financial market. The credit derivative products can change traditional credit risk management mechanism to put the credit risk into the market so that the risk concentration degree can be reduced. However, at present in Asia, due to the issue of the shortage of credit information, unsound financial regulations and laws and lack of the secondary market for loan transaction, etc., the development of the market of the credit derivative products is constrained. Alongside the solution of these problems, the market of the credit derivative products is certain to rapidly develop to boost the financial development in Asia.