ISDA: Greece in Default

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.