[lbo-talk] credit derivatives question (was "financial exchangesproportion?")

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Wed Feb 11 10:49:00 PST 2009


John Gulick writes:


> it's become well-known that there are hundreds of trillions
> of dollars of credit derivatives out there, many times the
> annual value of global economic output. I have some inkling
> of what this means but I'm not entirely sure. Does this figure
> refer to the gross value of transactions in credit derivatives
> (or the value of transactions in still outstanding credit
> derivatives, i.e. insurance policies that have yet to be
> paid out?).

Here's a decent summary of the question and some numbers; read this and come back with more questions if it's too technical.

http://zerohedge.blogspot.com:80/2009/02/some-more-facts-about-how-cds-market.html



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