Greek Deal Triggers Default Swaps

ISDA says Greece's forcing investors to participate should trigger insurance payouts.

Greece’s use of collective action clauses forcing investors to take part in the sovereign restructuring should trigger $3 billion of insurance payouts under rules governing credit-default swap contracts.

The International Swaps & Derivatives Association’s determinations committee meets at 1 p.m. in London today to decide whether the use of CACs is a restructuring credit event which will cause a payout of swaps insuring Greek debt.


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