ISDA: Greece in Default

    Protester, holds a black cross to symbolically mourn the death of PSI (Private Sector Involvement) and CDS (Credit Default Swaps) during a rally in central Athens, Tuesday, Jan. 17, 2012.  Strikes and demonstrations over austerity measures hit the Greek capital of Athens on Tuesday, as international debt inspectors returned to resume their scrutiny of the country's reforms. (AP Photo/Dimitri Messinis)

    Dimitri Messinis / AP Photo

    The International Swaps and Derivatives Association determined Friday that Greece’s debt is in default—and credit-default swaps will trigger. In a statement, the ISDA said it had decided to hold an auction March 19 on outstanding credit-default swaps that investors purchased to hedge against the risk of holding Greek sovereign debt. While the market for CDS is pretty small, the credit event has compromised investors’ faith in the European Union.

    Read it at Forbes