BlackRock’s on a Mission to Save the Credit-Default Swaps Market

BlackRock Inc. is leading a push to revive trading in a key part of the credit derivatives market that’s shrunk 57 percent as post-crisis regulations made it costlier to trade.

The world’s biggest asset manager is targeting contracts known as single-name credit-default swaps -- those tied to individual companies and countries. That piece of the market has declined disproportionately because it has been slower to adapt to new standards for trading. BlackRock has had preliminary discussions with banks and other debt investors for a plan that would route trades through clearinghouses intended to curb risks to the financial system.