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CRISIS LEADS TO DECLINE IN DERIVATIVES

20 May 2009 by Cullen Roche 0 Comments

The deflationary spiral hasn’t been contained to just the equity and real estate markets.  For the first time since 1998 OTC derivatives contracts have declined.  Notional OTC derivative contracts stood at $592 TRILLION in Q4 of 2008 versus the Q2 ’08 high of $638 TRILLION.

otcdeclineClick for larger image

Declines continued in the CDS market where the volume of outstanding contracts fell 27% to $42 trillion.

cdsdec

*Source: BIS

Cullen Roche

Cullen Roche

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