Credit Default Swaps In The Crosshairs

Law360, New York (March 17, 2009, 12:00 AM EDT) -- The current global economic crisis and the meltdown in the financial markets have prompted heightened scrutiny of various derivative products, with increasing focus on credit default swaps ("CDS").

This is largely due to the monumental size and opaqueness of the CDS market and the significant role that CDS are believed to have played in the financial crisis to date.

At their peak in mid-2008, the total notional amount of CDS outstanding was roughly $60 trillion, a number which dwarfs the approximately $11 trillion U.S. home mortgage...
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