Default insurance on Greek debt won't be paid out, the International Swaps & Derivatives Association said after it was asked to rule whether part of the nation's $170 billion bailout was a credit event.

The group said the European Central Bank's exchange of Greek bonds for new securities exempt from losses being imposed on private investors hasn't triggered $3.25 billion of outstanding credit-default swaps. ISDA's determinations committee, including JPMorgan Chase & Co. and Pacific Investment Management Co., said the switch didn't constitute subordination, one of the criteria for a payout under a restructuring event.

“The situation in the Hellenic Republic is still evolving” and today's decisions “do not affect the right or ability to submit further questions,” ISDA said in a statement. The decision is not an expression of the committee's “view as to whether a credit event could occur at a later date,” the association said.