1.3.12

ISDA: No 'credit event' occurred on Greece's CDS

The International Swaps and Derivatives Association (ISDA) on Thursday
said its EMEA Determinations Committee unanimously ruled that no
"credit event" has yet occurred amid Greece's efforts to restructure
its debt holdings.

A declaration of a "credit event" would require a payout on credit
default swaps (CDS) held as insurance against nonpayment.

The panel ruled unanimously that a move effectively insulating the
European Central Bank and national central banks from being forced to
participate in the restructuring in the event that collective-action
clauses are triggered didn't constitute a credit event. They also
determined they hadn't received evidence that the restructuring itself
met the definition of a credit event.

The panel said, however that the situation is still eveloving and that
market participants could submit further questions to the body "as
further facts come to light.

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