Europe's growing political risks are reviving a moribund corner of the credit market.

Trading in credit-default swaps tied to French, Italian and Dutch sovereign debt has surged this year as populist parties garner electoral support by bashing the euro and European Union. That's stemmed a long-term slump in trading of contracts insuring European government debt that was spurred by tougher regulations in 2012.

Swaps tied to French debt have posted some of the biggest trading increases, with weekly average volumes more than doubling this month versus January, to $1.1 billion, according to data from Depository Trust & Clearing Corp. Marine Le Pen, who leads in polls for the first round of France's presidential election in April, wants to break up the euro and replace it with new national currencies.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.