According to a FI professional in Singapore…
Structured/exotic FI derivatives are much less liquid in Asia than in US.
MBS/ABS? —- People trade US MBS.
Credit Default Swaps — this is main credit product, so popular.
Collateralized Debt Obligations — CDO was very hot before 2008 financial crisis but seems dead after financial crisis
interest rate swaps — this is main rates product, so popular.
swaptions — main rates product, popular.
Citi muni trades a lot of swaptions, caps/floors, treasury futures and also CDS. IRS is the cheapest and most basic derivative, and probably the most widely used.
As of 2012 in US, most common IR derivatives after IRS are 1) Swaption and 2)caps/floors