Greek Event
The International Swaps and Derivatives Association said Friday
that the Greek government's use of collective-action clauses, or CACs, to amend to terms of Greece-issued bonds qualifies as a "credit event" for Greece. A credit event requires a payout to those who held credit default swaps as insurance to protect themselves in the event of a Greek default.
The ISDA decision could trigger payouts on $3.2 billion of those insurance-like contracts
MarketWatch, 9 March 2012
that the Greek government's use of collective-action clauses, or CACs, to amend to terms of Greece-issued bonds qualifies as a "credit event" for Greece. A credit event requires a payout to those who held credit default swaps as insurance to protect themselves in the event of a Greek default.
The ISDA decision could trigger payouts on $3.2 billion of those insurance-like contracts
MarketWatch, 9 March 2012
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