- has been difficult to answer due to the participation in the market of many types of regulated and unregulated investors and firms as well as the fact that participants simply reverse or close out one exposure by entering into an additional and offsetting one, as they do with other types of swaps.
To be sure, notional amounts substantially overstate the level of risk transfer, but by most accounts, market participants seem to agree that the volume of risk transferred has been material. Anecdotally, some of the largest banks indicate they hedge about 15 percent of their investment-grade corporate credit.