CDS Notional Surpasses $8 Trillion as Clearing Rates Hit Record Highs
The notional value of credit default swaps (CDS) reported to US swap data repositories surged by 12.9% to reach $8.1 trillion in the week ending March 20, 2026. This marks the first time the figure has crossed the $8 trillion threshold since 2015, representing the most significant weekly increase for investment-grade trades since 2013. The substantial rise was primarily driven by a sharp increase in cleared CDS transactions, which climbed 28.8% to $5.9 trillion. In contrast, uncleared CDS volumes declined by 15.4% to $2.4 trillion during the same period. Consequently, the overall clearing rate for these derivatives improved by nine percentage points, reaching a record high of 73%. This shift indicates a strong market movement toward centralized clearing mechanisms, likely influenced by regulatory pressures or risk management strategies among major financial institutions. The data highlights a pivotal moment in the derivatives market, showcasing renewed activity and structural changes in how credit risk is managed and reported within the United States financial system.
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CDS Notional Surpasses $8 Trillion as Clearing Rates Hit Record Highs
The notional value of credit default swaps (CDS) reported to US swap data repositories surged by 12.9% to reach $8.1 trillion in the week ending March 20, 2026. This marks the first time the figure has crossed the $8 trillion threshold since 2015, representing the most significant weekly increase for investment-grade trades since 2013. The substantial rise was primarily driven by a sharp increase in cleared CDS transactions, which climbed 28.8% to $5.9 trillion. In contrast, uncleared CDS volumes declined by 15.4% to $2.4 trillion during the same period. Consequently, the overall clearing rate for these derivatives improved by nine percentage points, reaching a record high of 73%. This shift indicates a strong market movement toward centralized clearing mechanisms, likely influenced by regulatory pressures or risk management strategies among major financial institutions. The data highlights a pivotal moment in the derivatives market, showcasing renewed activity and structural changes in how credit risk is managed and reported within the United States financial system.
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