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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: Skeeter Bug who wrote (101547)2/22/2009 9:36:23 AM
From: patron_anejo_por_favor  Read Replies (3) of 110194
 
I've seen smaller recent estimates for CDS notional value:

en.wikipedia.org

Credit default swaps are by far the most widely traded credit derivative product.[15] DTCC, which maintains a database holding around 90% of all credit derivative transactions, held $29.2 trillion of outstanding CDS trades as of 26 December 2008.

It's a large number in any event, but I think the 50-60 trillion number was total notional value of derivatives worldwide (not just CDS).

Here's a "real-time" example with LEH:

For example, at the time it filed for bankruptcy on 14 September 2008, Lehman Brothers had approximately $155 billion of outstanding debt[23] but around $400 billion notional value of CDS contracts had been written which referenced this debt.[24]

Of the 400 billion, 245 billion was not covered....about 60% for the gamblers, presuming all of the debt was covered by buyers (undoubtedly not all of it was).
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