1) Did sarbox have an impact on the growing market? (postulation) No. The CDS market's initial growth predates serb-ox and is a consequence of removing risk from bank's trading books to increase capacity. Serb-ox applies mostly to non-finance firms as standard financial intermediaries and asset managers have always been under more onerous regulatory framework. 2) Widening credit spreads on genuinely great AAA will drive bond managers out of treasuries, and thus all yields will go up. Um.... this is actually a debatable point. But I don't think so.... in order to make up the ground already lost - it's more likely that managers are going to dive into AAA assets to yield. The players in this space are rating constrained - so if they can buy stuff that doesn't take up their low-quality allocation at a higher yield, they might.