Friday, February 29, 2008
CDS $45.5 Trillion versus Stock Market $21.9 Trillion.. theres only one way to find out….FIGHT
Apologies to Harry Hill! This is about the graphics that were posted onto this site earlier this month. This jorno basically says that the CDS values are not as big because they are notional amounts not actual. A Corrorally is the S&P futures and the stock market. The stockmarket is the actual physical value of the shares were traders trade the S&P based on $250 thimes the index (used to be $500 times the index) - so the notional value of contracts traded is huge. Hes comparing the CDS value used of $45m - in effect with the notional value of the S&P futures (at least thats what i think he's saying!!).