1. It will not have a major impact. We already report under US GAAP (FAS133) and as such are used to the designation and documentation requirements. It’s our policy to use appropriate financial instruments to manage identifiable risks in our business and I don’t see this changing.
2. Unlike interest rate, commodity and FX risks, it is difficult for most corporates to readily identify and calculate what their credit risk (if any) is. Perhaps with greater knowledge and understanding and a wider availability of low-cost risk management tools, corporates will become more comfortable with credit derivatives.