Friday, March 9, 2012

ISDA: Market Participant Asks If Greece Has Suffered Credit Event

Wall Street Journal
March 9, 2012

A special committee of the International Swaps and Derivatives Association will meet at 1300 GMT Friday to consider a question from a market participant on whether Greece has suffered a credit event, ISDA has said in a statement.

Greece Friday announced results of its distressed-debt exchange with private creditors; 85.8% of bondholders pledged to participate.

It subsequently said it would be activating collective action clauses to force any holdouts into the deal.

If the ISDA committee rules that a credit event has indeed occurred, it could trigger payouts on $3.2 billion of insurance-like contracts covering Greek sovereign debt.


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