CDS Notional Value Less Than Expected

As reported at the Deal Book blog, the total size of credit default swaps outstanding on corporate, government, and asset-backed securities is "only" $33.6 trillion, smaller than the previous estimates of +$50 trillion. The largest CDS dollar amounts were written against debt for Merrill Lynch, Goldman Sachs, Morgan Stanley, GE Capital, Countrywide, GMAC, and government debt in Turkey, Italy, Brazil, and Russia. Nonetheless, much of the notional value has been reduced through hedging. The weekly reports are being offered by the Depository Trust and Clearing Corporation, and are expected to also include trade volume and turnover in future reports. Expect more transparency going forward. A little sunlight is the best disinfectant.