Join the Community

23,247

Expert opinions

43,779

Total members

372

New members (last 30 days)

182

New opinions (last 30 days)

29,055

Total comments

Join Sign in

600 trillion us dollar CDS market

06 November 2008 1 comment

Retired member

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?

External

This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.

4180

Report

Channels

/regulation & compliance /wholesale banking

Comments: (2)

Paul Penrose Head of Research at Finextra

06 November 2008

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.

Report

A Finextra member

06 November 2008

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

Report

More expert opinions

Anand Vaidya Principal Solutions Consultant at Icon Solutions