Greece sovereign debt, a "credit event", CDS and the ISDA!
On Thursday the International Swaps and Derivatives Association, or ISDA, is reportedly going to begin work on its decision for what the Greek sovereign debt "credit event" will ultimately be called, and therefore what it will be considered as per the arcane legal parlance of the bond official statements.
This decision will go a long way in determining whether the outstanding insurance on Greece sovereign debt, aka Credit Default Swaps (CDS), will be triggered and have to pay off.
That, as they say, would be no small deal although the actual impact won't be known until it happens!
And now for an encore presentation of the article at TPC February 1, 2012: "A Greece bond haircut definitely won't look like this!
Jim Sinclair on a Greece default, the pending ISDA decision and the insolvency of the five largest U.S. banks!
Join us on our
Share this page with your friends
on your favorite social network: