Wednesday, February 29, 2012

Goldman Discloses Risk to Credit Derivatives Tied to European Debt

Goldman Sachs, the fifth- biggest U.S. bank by assets, disclosed for the first time the gross value of credit-default swaps the firm purchased and sold relating to Greece, Ireland, Italy, Portugal and Spain, the good people at Bloomberg tell us.

At the end of 2011, Goldman Sachs had sold $142.4 billion of single-name swaps, contracts that pay out in the event of a default, on the five countries, the firm said yesterday in an annual filing with the U.S. Securities and Exchange Commission. The company also had purchased contracts with a gross notional value of $147.3 billion on the nations’ debt, the filing shows.

Goldman also said that “legally enforceable netting agreements” would reduce the amount of credit-default swaps purchased on the five countries to $21.1 billion and the amount sold to $16.2 billion….

Learn more at http://www.bloomberg.com/news/2012-02-29/goldman-sachs-discloses-risk-to-credit-derivatives-tied-to-european-debt.html

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