This is an old revision of this page, as edited by Jerryseinfeld (talk | contribs) at 03:10, 5 January 2005 (→Levels and flows). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.
Revision as of 03:10, 5 January 2005 by Jerryseinfeld (talk | contribs) (→Levels and flows)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff)The Credit default swap (CDS) is one of the most widely used credit derivatives. It is an agreement between a protection buyer and a protection seller whereby the buyer pays a periodic fee in return for a contingent payment by the seller upon a credit event (such as a certain default (finance)) happening in the reference entity.
Levels and flows
The Bank for International Settlements reported the notinal amount on outstanding credit forwards and swaps to be $3.846 trillion in end-June 2004, up from $536 billion at the end of June 2001.
The Office of the Comptroller of the Currency reported the notional amount on outstanding credit derivatives from 667 reporting banks to be $1.909 trillion.