Friday, October 31, 2008

ISDA sees hope, releases meaningless figure

Apparently, a giant paperwork exercise, courtesy of a Swedish firm, has reduced a self-admitted meaningless figure, "total notional value".

Still, these preliminaries must be important, one hopes, toward generating something like a system-wide open-interest figure, broken down along various lines.

They also passed out some guidance and documentation guidelines. Do Hedge Funds ... take guidance?

Oh, for those of us, not privy to the inner workings of the CDS market, some useful jargon was explained. A "Compression", a.k.a. a "tear-up", which seems roughly analogous to a netting or an unwind (it doesn't make their glossary).

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