The credit derivatives and structured credit markets have been booming in recent years. Credit specialists are among the highest paid and most sought-after bankers in the industry and their departments have enjoyed a big share of bonus pools. But, if prevailing wisdom is to be believed, they deserve our pity because they are to become the most maligned people in the industry.

Lawyers believe the recent spat over a collateralised debt obligation investment between Barclays Bank and Germany's HSH Nordbank could be the first of many. The finer details of the out-of-court settlement are not known, but most observers believe they included a climbdown by Barclays. Since then, an Italian bank has taken out a similar suit against Bank of America.