ISDA asked to consider second query on Greek CDS trigger
The International Swaps and Derivatives Association has been asked a second question on whether Greece’s efforts towards a restructuring constitute a credit event which would trigger credit default swap contracts.
The request was submitted anonymously as a general interest question, and comes in addition to an outstanding request which will be considered at a meeting later on Thursday.
The ISDA committee which decides whether a credit event has occurred has not yet stated whether it will consider the second question.
If the committee agrees to review the case it will discuss whether the ISDA definitions of a credit event have been met, which would lead to a payout on the net notional $3.25 billion of outstanding Greek CDS. [Reuters]
