If corporate bonds don't trade frequently enough for you, onesolution is to turn elsewhere.

More and more investors are betting on whether the notes will goup or down in value without owning the securities, usingderivatives. This has been attractive for asset managers looking tobe nimble in markets or make big bets, especially as corporate-debttrading volumes wane.

Pacific Investment Management Co.'s (Pimco's) Bill Gross,manager of the world's biggest bond fund, is one who's usingcredit-default swaps (CDS) for bullish wagers on company debt. Heaccelerated his use of the contracts in the three months ended June30 by selling protection against credit losses, according to aquarterly report.

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