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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (6287)	9/9/1998 1:00:00 PM
From: Worswick	Read Replies (1) \| Respond to of 9980

Apparently, the derivative exposure of one Japanese bank is equal to either half of the whole US annual GNP or the whole ofthe annual US GNP. What is 418 trillion yen.... in evergreen US dollars? "TOKYO, Sept 9 (Reuters) - Fuji Bank said on Wednesday it saw a maximum possible loss from its derivatives trading of about 15 billion yen. The Japanese bank reiterated in a hastily called news conference that there was no truth in market rumours of it suffering derivatives losses. It said the risk was not high from its derivatives transactions, which were mostly interest rate swaps. Yutaka Komatsu, derivatives products general manager at Fuji Bank, said the maximum loss forecast was based on the bank's group-based outstanding derivatives contracts as of end-March. ''Our derivatives trading is controlled to have very small market risk,'' Komatsu told a news conference. Komatsu said the bank's notional amount of derivatives transactions totalled 418 trillion yen as of the end of March. This included both capital calculated according to the standard set by the Bank for International Settlements (BIS) and that not so calculated. The derivatives contracts outside the BIS standard include those in the interest futures market and foreign exchange contracts whose terms are shorter than 14 days". Blink. Am I really reading this? * you might check out "the derivative thread" on SI for the latest update.