Ahhhh...indeed. Thanks for that:
• The notional value of credit derivative contracts increased by 4% during the
quarter to $16.1 trillion.
Credit Derivative: A financial contract that allows a party to take, or reduce, credit exposure (generally on a
bond, loan or index). Our derivatives survey includes over-the-counter (OTC) credit derivatives, such as credit
default swaps, total return swaps, and credit spread options.
• The notional value of derivatives held by U.S. commercial banks decreased $6.3 trillion in the third
quarter, or 3%, to $175.8 trillion.
Derivative: A financial contract whose value is derived from the performance of underlying market factors,
such as interest rates, currency exchange rates, commodity, credit, and equity prices. Derivative transactions
include a wide assortment of financial contracts including structured debt obligations and deposits, swaps,
futures, options, caps, floors, collars, forwards and various combinations thereof. |
