Activity in credit derivatives has continued to explode in spite of investors’ and regulators’ growing concern that recent events such as the Bear Stearns’ implosion have highlighted potential weaknesses in the infrastructure of this market.

The total volume of outstanding credit derivatives contracts stood at $62,200bn at the end of last year, up from $34,500bn a year earlier, the International Swaps and Derivatives Association will announce at its annual conference in Vienna today. This is 10 times the level of four years ago.