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

The group said the European Central Bank's exchange of Greekbonds for new securities exempt from losses being imposed onprivate investors hasn't triggered $3.25 billion of outstandingcredit-default swaps. ISDA's determinations committee, includingJPMorgan Chase & Co. and Pacific Investment Management Co.,said the switch didn't constitute subordination, one of thecriteria for a payout under a restructuring event.

“The situation in the Hellenic Republic is still evolving” andtoday's decisions “do not affect the right or ability to submitfurther questions,” ISDA said in a statement. The decision is notan expression of the committee's “view as to whether a credit eventcould occur at a later date,” the association said.