44975

Retired Member

3,172Posts 11,364,739Views 3,409Comments

Facebook Twitter LinkedIn Reddit Google+ email

A post relating to this item from Finextra:

European Commission sets year-end deadline for creation of CDS clearing counterparty

06 November 2008 | 8211 views | 0

The European Commission has set an end-year deadline for financial market participants to draw up a blueprint for the clearing of credit default swaps.

600 trillion us dollar CDS market

06 November 2008 | 3161 views | 1

With the sum of $600 trillion CDS, it now looks as though the sub-prime crisis is a relatively benign subject.

It is safe to say that a lot of these CDS' spread have increased because of the current economic crisis and the number of defaults. How much of this $600 trillion CDS is affected by credit defaults is a very good thing to know at this point. Will CDS sellers be able to fund these losses?

TagsRisk & regulationWholesale banking

Report abuse

Comments: (2)

Paul Penrose - Finextra - London | 06 November, 2008, 13:36

Actually, the $600 trillion figure refers to the total OTC derivatives market. The figure for CDS swaps is approximately ten per cent of that value, or $60 trillion.

Be the first to give this comment the thumbs up

0 thumb ups! (Log in to thumb up)

Report

A Finextra member | 06 November, 2008, 13:57

Thanks for the $60 trillion correction, Paul. It's still a tidy sum and worrisome. It could be the next new term that moms and pops will want to understand after sub-prime

0 thumb ups! (Log in to thumb up)

Report

Comment on this story (membership required)