Generali's 12 Days of Xmas Question 12

Generali

Finally, we get to the last question for antrobus to Google.

What percentage of world GDP is the outstanding notional value of derivatives contracts?

mayonnaise

Generali wrote: »

Finally, we get to the last question for antrobus to Google.

What percentage of world GDP is the outstanding notional value of derivatives contracts?

Before antrobus googles, I'd say 300%

Whatever it is, it's very big and we should buy silver and bitcoins.

CLAPTON

now we were discussing this over a beer; unfortunately before we reached a decision, some-one changed to topic to Virginia

wotsthat

Quite a boring question - limited opportunities for horridness.

It's got to be way over 100% as the filthy boomers try to mortgage the compounding power of the youth.

theEnd

Generali wrote: »

outstanding notional value of derivatives contracts?

I'd say 500%+, but it's a completely irrelevant number.

michaels

Gross or net?

Generali

michaels wrote: »

Gross or net?

Gross notional value divided by nominal gross world product, both as decided arbitrarily by me.

The notional is the value of the underlying product not the actual value of the derivatives as implied by the P&L on the contract.

chewmylegoff

Generali wrote: »

Finally, we get to the last question for antrobus to Google.

What percentage of world GDP is the outstanding notional value of derivatives contracts?

I reckon about 25,000% or something equally ludicrous.

Generali

theEnd wrote: »

I'd say 500%+, but it's a completely irrelevant number.

It is but it's quite fun. The risk is in the P&L: the liability one bank has to another.

chewmylegoff wrote: »

I reckon about 25,000% or something equally ludicrous.

I've not bothered to work out the number yet but it is going to be massive I suspect.

the_flying_pig

The total value will be too big to make percentage comparisons a wieldy tool.

I think possibly maybe less than 100 times but certainly more than 10.

Let's call it somewhere in the middle, 55 times? Higher wouldn't surprise me. Truthfully it's an area I know very little about.

Generali

the_flying_pig wrote: »

The total value will be too big to make percentage comparisons a wieldy tool.

I think possibly maybe less than 100 times but certainly more than 10.

Let's call it somewhere in the middle, 55 times? Higher wouldn't surprise me. Truthfully it's an area I know very little about.

I hadn't thought about it too closely before posing the question. I just happened to hear the outstanding notional figure the other week as it has just passed a milestone of sorts. I think you're going to be within reach of the answer.