yt, OTC derivatives will have displaced the bond market.
Growth in OTCD has been 40% (gross) in 2 yrs since Dec07 - in single currency derivatives, the growth has been a phenomenal 80% with EURO and USD holding 81% of this position. This anchors the concept if fiat currency forever more.
Latest OTC market info http://www.hotcopper.com.au/post_single.asp?fid=275&tid=1228605&msgid=6901845
There is good reason Germany for banning the use of CDS swaps, as they willfully encourage default. The whole planet should be backing the move.
