Credit Default Swaps Losses Estimated at $150 Billion

"The story argues that the other shoe may finally drop in the $62 trillion CDS market due to rising junk bond defaults. We've long seen that market as a disaster in the making. With economic exposures estimated at 2% of notional amount, $1,2 trillion is at risk, making it larger than the subprime market. Thus the $150 billion in losses estimated by BNP Paribas analyst Andera Cicione is plausible."