Free Republic

IT'S OFFICIAL: ISDA TRIGGERS GREEK CDS IN UNANIMOUS DECISION Simone FoxmanMarch 9, 2012 It's for real this time. The International Swaps and Derivatives Association determined today that Greece's bond swap has triggered a credit event. That will lead to payouts of credit default swaps—essentially, securities contracts on holdings of Greek bonds—that investors purchased to hedge against the risk of holding Greek sovereign debt. An auction related to outstanding CDS transactions will be held on March 19. The committee asks that any investor wanting to participate in the auction notify ISDA immediately. Provocation of a credit event has been a contentious...

Greek Default Looms As Voluntary Debt Deal Looks Set To Fail European leaders are braced for the eurozone’s first ever sovereign default this week as Greece’s efforts to secure a €206bn (£172bn) “voluntary” bond swap looks increasingly unlikely. Credit rating agencies have warned they will declare Athens to be in default if they force bond swap on investors. By Louise Armitstead 03 Mar 2012 Authorities in Athens are ready to enforce the controversial collective action clauses, or CACs, to impose the restructuring deal on all bondholders as the number of voluntary agreements look set to fall short of the required...