Derivatives Intelligence (part of Institutional Investor) reports that the International Swaps and Derivatives Association has determined that Greece has triggered a credit event in connection with its debt restructuring.
This would trigger the payment of credit default swaps – insurance contracts on Greek bonds issued under Greek law.
But we don’t know why they have this and no one else knows, and we can’t confirm. Therefore, we have doubts as to the veracity of this report. While everyone expects this to be the result, the report is not currently released.
The ISDA committee met today to discuss the matter and said it will issue a statement on whether or not a credit event occurs once Greece officially activates the clauses. collective action that it recently included in its Greek debt issues.
The consensus is that activating CACs will indeed trigger a credit event, but analysts have waited all day for a decision to be released here, in vain (again).
UPDATE: Lauren Dobbs, spokesperson for ISDA in New York, denied the veracity of this report in a telephone interview with Business Insider. They have yet to make an official announcement on the credit event.