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Yet the notional value of outstanding interest-rate swaps is $685 billion, or 37% of GDP.
For example, the notional value of the CDS market is $36 trillion, says the BIS.
In 2004, 787m contracts, with a notional value of $463 trillion, were traded on the Merc.
Goldman's overall position with A.I.G., or the "notional" value of the contracts, was about $20 billion, he said.
In Britain, (see chart) the notional value of share-linked rewards accounted for only 12% of what bosses got.
A.I.G. listed the total notional value of these derivatives, credit-default swaps, as $109 billion at the end of March.
According to the Bank for International Settlements, the notional value of all OTC derivatives contracts outstanding is almost $700 trillion.
By late 2007, the notional value of outstanding credit-default swaps was about sixty trillion dollars — more than four times the size of the U.S. gross domestic product.
The notional value of the outstanding derivatives contracts had fallen to $1.6 trillion by year-end, from $2.1 trillion a year ago, she said.
ISDA was quick to point out that actual credit exposure was a mere 2% of the notional value of all contracts.This coyness is hardly surprising.
The notional value of defined-benefit pensions rose as interest rates fell: a larger pot of assets is needed to generate the same pension income.
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