ISDA update

Today is the last day of the annual gathering of the ISDA in Vienna. According to Robert Pickel, Chief Executive Officer of the International Swaps and Derivatives Association:

"Credit derivatives, particularly credit-default swaps, have created a vibrant and extremely liquid marketplace for trading and offsetting credit risk. These markets have continued to remain open, providing an outlet, in many cases the only outlet, for firms to continue to manage their risk.''

I don't know on which planet he is living on. "Vibrant" probably relates to the bloated CDS market which is at a new high of $60 trillion. The most provoking commentary comes from Jon Eilbeck, chief operating officer of global rates at Deutsche Bank AG:

"The current crisis will go on through early next year but in the derivatives market I don't see lasting damage. The future's never been brighter and there is light at the end of the tunnel.''

You can't beat that optimism.