CNBC
Friday, March 9, 2012
A group representing dealers in credit default swaps decided Friday that Greek?s bond swap constitutes a ?credit event? that entitles holders of Greek credit default swaps to compensation.
The ?yes? vote by the International Swaps and Derivatives Association triggers roughly $3.2 billion in CDS, which are insurance policies that pay out if a bond issuer defaults. That amount is actually much smaller than many had feared.
The decision was widely expected, and stocks were slightly down after the announcement.
Greece pushed through a bond swap deal on Friday, forcing bond holders to take a significant ?haircut? on the return of their money. The swap was approved by about 84 percent of the holders, and Greece is moving to activate a rule forcing the rest of the bondholders to go along with the deal.
Full story here.
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Source: http://www.prisonplanet.com/greece-default-is-official-insurance-payouts-triggered.html
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