Fitch Ratings said today that a survey has found that as credit derivatives market expansion continues at a remarkable pace, concern is growing about how the sector will deal with an eventual downturn.
The total amount of credit derivatives bought and sold reached nearly $50 trillion at year-end 2006, an increase of 113 percent over the $23.4 trillion reported for year-end 2005, Fitch reported.
Despite the current benign corporate credit environment, a number of market participants expressed concern for how smoothly the market can deal with an eventual downturn in the credit cycle, Fitch said.
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