Kreditmärkten

Kreditmärkten refer to over-the-counter (OTC) markets where institutional investors and other financial intermediaries trade securities with each other, often using credit rather than cash. These markets are typically unregulated and operate outside of traditional stock exchanges. In these markets, participants engage in buying and selling various types of securities, including bonds, loans, and other debt instruments.

Kreditmärkten involve a range of actors, including commercial banks, investment banks, asset managers, and other financial institutions. These entities buy and sell securities in Kreditmärkten in order to manage their risk exposure and exploit perceived imbalances in the market. Sales and trading desks within these institutions often participate in Kreditmärkten, as do hedge funds and other investors seeking to generate returns through leveraging their equity bases.

Market participants in Kreditmärkten typically enter into private commitments or contracts with each other, outlining terms such as pricing, collateral requirements, and settlement procedures. Deals are often settled on a secured or unsecured basis, and may involve continuous price adjustments in response to market movements. Given the private nature of Kreditmärkten, regulatory oversight in these markets often relies on disclosure requirements and lack of a central exchange raises issues in terms of trading visibility and market transparency.

The growth and development of Kreditmärkten reflect increasingly complex financial market structures, greater liquidity needs, and relative deterioration in asset spreads.