From ISDA (2009 Margin Survey):
Use of collateral in privately negotiated derivatives transactions grew significantly in 2008, with the amount of collateral in circulation now estimated at $4.0 trillion.
The results show an increase of almost 86 percent over the estimated $2.1 trillion of collateral in the 2008 Survey.
Cash continues to grow in importance among most firms, and now stands at over 84 percent of collateral received and 83 percent of collateral delivered.
the perfect way to tie up money unproductively. how much of it is parked in treasuries?
Wow. So this is what a global margin call looks like.
And cash only, please. No equivalents, thanks much. Does this help answer the question, “where the #*@!$ did all the money go?”