Quarterly bank OCC report: Total Swaps jumped by $10T of nominal value in 2021 after being flat for the last 5 years. GS still leveraged 136:1 on their nominal derivatives, but was reduced. Top 5 increased their swaps by ~$1T each. Top 4 added $200B in short term Equity Derivatives alone.

by laflammaster

Caption: Table 1: NOTIONAL AMOUNTS OF DERIVATIVE CONTRACTS

www.occ.gov/publications-and-…

Caption: Table 3: DISTRIBUTION OF DERIVATIVE CONTRACTS

www.occ.gov/publications-and-…

Caption: Table 4: CREDIT EQUIVALENT EXPOSURES

www.occ.gov/publications-and-…

Caption: Table 10: NOTIONAL AMOUNTS OF DERIVATIVE CONTRACTS BY CONTRACT TYPE AND MATURIT

www.occ.gov/publications-and-…

Swaps are a type of contract, where you make a bet that the underlying security would go down.

Swap type depends on the type of security you are looking to “bet against”.

There are multiple types of swaps:

• Interest Rate Swaps
• Commodity Swaps
• Zero Coupo Swaps
• Currency Swaps
• Credit Default Swaps
• Total Return Swaps

Each of those types of swaps may cover specific sets of securities, although some can overlap (need to confirm).

Total Return Swaps gives an investor the benefits of owning securities, without actual ownership. www.investopedia.com/articles/investing/052915/different-types-swaps.asp#credit-default-swaps

Within those securities, equities represent a subset (portion) of total value.

So, in dollar value:

Total Swaps > Total Return Swaps > Total Equity Return Swaps.