The International Swaps and Derivatives Association said on Thursday it does not believe a credit event has occurred in Greece -? and thus Greek credit default swaps, also known as CDS, have not triggered.
A triggering of Greece’s CDS would force credit default sellers to compensate buyers. The notional amount of CDS on Greece’s sovereign debt is estimated at $3.2 billion.
Private holders of Greek government debt last month accepted a restructuring involving the writedown of 53.5 percent of their investment, alongside a 130 billion euro bailout deal between Greece and its foreign lenders — the European Union and the International Monetary Fund.