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ISDA: Greece in Default

Will trigger credit-default swaps.

cheats/2012/03/09/isda-greece-in-default/greece-isda-cds-cheat_afkaom

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

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