Monday, November 10, 2008
"CDSs have their uses. There is no reason why investors should not speculate in corporate debt if they can speculate on equities, currencies, commodities and the rest."
Famous last words, don't you think?
Jayanth Varma of IIM, Ahmedabad, draws atention to the fact that the Depository Trust and Clearing Corporation of the US has published what is perhaps the first comprehensive official numbers on the global credit default swap market, including the top 1000 reference names, that account for over 95% of the market by gross notional value and a little less than 90% by net notional value.
Global gross notional exposure is $15.38 Trillion and Net notional exposure is $1.76 Trillion.
There are 4 Indian-owned entities in this list (ICICI, Reliance Industries, State Bank of