MMAC reduced its investment in the leveraged bond portfolio through the termination of 15 total return swap agreements that had a total notional amount
of USD 102.6 million and sold one multi-family tax-exempt bond and one subordinate certificate interest in a multi-family tax-exempt bond.
Furthermore, bond spreads increase in a concave manner with CDS insurance, and the maximum impact of CDS insurance on spreads occurs when the CDS net notional amount
exceeds total debt.
In particular, MMAC reduced its investment in the leveraged bond portfolio through the termination of 15 total return swap agreements that had a total notional amount
of $102.6M and sold one multi-family tax-exempt bond and one subordinate certificate interest in a multi-family tax-exempt bond.
In addition, holders of FCA mandatory convertible securities are entitled to receive 0.77369 common shares of Ferrari for each MCS unit of USD 100 in notional amount
Based on the contracted settlement date, the profit or loss is adjusted between the two counterparties based on the difference between the contracted NDF rate and the prevailing spot forex rates on an agreed notional amount
The activities at AIGFP, including selling credit default swaps on $2.77 trillion notional amount
of CDS is widely attributed as the reason the company needed government aid to stay alive.
The final regulations make clear that the adjustments are made based on a distribution or contribution of a notional amount
and therefore without the recognition of any built-in gain or loss on the distribution of that notional amount
For example, as of December 2010, the notional amount
outstanding (the gross nominal value of all deals) in the entire OTC market, excluding commodity contracts, was $598 trillion, nearly nine times the amount outstanding in the exchange-traded market (S68 trillion).
AIG Financial Products, the unit behind the insurer's collapse, reduced the notional amount
of its derivative portfolio by 20% during the quarter, to pounds 514bn at March 31.
They include the reference rate, notional amount
, and payment provisions.
OCC's Quarterly Report on Bank Trading and Derivatives Activities said that the notional amount
of derivatives held by insured U.S.