Corporate associate Kevin S. Zadourian was quoted in a September 13 article entitled "Stress Testing" in The Deal about the takeover of Freddie Mac and Fannie Mae by the federal government being a test for the way credit default swap traders settle large volumes of credit default swaps. Zadourian was quoted as saying that although the auction protocol to settle the CDS would keep participants busy, ultimately the process should go pretty smoothly. The relatively new CDS instruments have mushroomed over the past few years, and it has remained a self-regulated, over-the-counter operation. Given that the CDSs related to Freddie Mac and Fannie Mae are estimated to cover a notional $1.6 trillion of debt issued by the mortgage securitizers, the scale of the CDS to be settled is unprecedented. However, despite the scale of the Fannie and Freddie default, according to the article, it doesn't appear as though CDS sellers will have to make large payouts come the first week of October, when the contracts come due. "This is somewhat unique, because it's not a credit-negative event," Zadourian was also quoted as saying.