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An article relating to this blog post on Finextra:

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

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.


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600 trillion us dollar CDS market

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?

Comments: (2)

Paul Penrose
Paul Penrose - Finextra - London 06 November, 2008, 13:36Be the first to give this comment the thumbs up 0 likes

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.

A Finextra member
A Finextra member 06 November, 2008, 13:57Be the first to give this comment the thumbs up 0 likes

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