As of september 30th
$314 bn outstanding swap and mark-to-market “losses” of over $10 bn
The latest data, november 14th, shows a “carrying value” of about $563 bn for outstanding swaps in the region of $600 bn+
From various sources: H.4.1, U.S. International Reserve Position, Treasury and Federal Reserve FX operations.
Note:
Why “losses” and not losses:
Valuation adjustments on swap-related holdings do not affect profit and loss because the impact is offset by the unwinding of the forward contract at the repayment date.
Yes, but, of course, someone is making money on the Other Side of the Trade, so there’s no real loss, is there?
“Valuation adjustments on swap-related holdings do not affect profit and loss because the impact is offset by the unwinding of the forward contract at the repayment date.”
FAT chance they unwind.