$45,464 Billion credit default swaps outstanding in 2007; 59% were collateralized?

As we try and get our arms around the ultimate scope and outcome of whatever deleveraging is underway, here is a  ISDA generated document showing the notional amounts outstanding of derivative transactions (note that they’ve already adjusted these figures to avoid double-counting) beginning in 1997: 


 In ISDA’s 2007 survey of collateral, they found that 59% of derivative transactions were secured by collateral agreements, and that 59% of mark-to-market credit exposures were covered by collateral agreements. 


2 responses to “$45,464 Billion credit default swaps outstanding in 2007; 59% were collateralized?

  1. Thanks for some very good articles – esp over the last couple of days.

    Needless to say, we’ve barely scratched the surface of the deleveraging that will be instigated by losses in the CDS market. The events of this past week are just the first sneeze – before the patient even comes down with a cold.

    It’s possible that the rise for the Dow today (Jan 23’rd) could signal a belief on Wall St that the US Gov’t is going to bail out the monoline insurers. While Wall St sings a triumphant “Hurrah!” (if this happens – yet to be confirmed), it’s just another step in the tragic demise of US Gov’t debt. The US Gov’t used to be the most respected player in global finances. These days Uncle Sam is rapidly becoming the world’s biggest financial dumpster.

    Got financial trash? You know where to bail it out!

  2. I usually do not comment, however after reading
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