As CDS market shrinks, CVA questions grow

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Sometime in mid-2006, the outstanding notional of the single-name credit default swap (CDS) market passed the $15 trillion mark, according to the Bank for International Settlements (BIS). It was on a steep upward trajectory that reached a $33.4 trillion summit two years later. Since then, it has been shrinking and, as of the first half of 2012, the BIS estimates it was, once again, worth around $15 trillion in notional terms. A host of factors have been dragging volumes south – new capi