Greek CDS insurance payments not triggered
(Reuters) - Greece's recent moves to prepare for a debt restructuring have not triggered a payout on credit default swaps, the International Swaps and Derivatives Association said on Thursday.
However, a credit event is still widely expected if Greece uses recently approved legislation enabling it to force its debt restructuring upon all of its private creditors. This could happen shortly after the window for the restructuring deal closes on March 8.
ISDA's Thursday ruling means holders of these insurance contracts, worth a net $3.25 billion, will not receive payment at this stage, though further rulings based on any new questions are still possible.
"The situation in the Hellenic Republic is still evolving and today's EMEA (determinations committee) decisions do not affect the right or ability of market participants to submit further questions," ISDA said in their statement.
My view:
Keep your stops tight if trading, as this situation could still surprise us to the downside.
My suspicion is we are very close to a market top currently, of course the tinkering of the Fed and Euro Feds should not be underestimated.
I am keeping close watch on the volatility index.
(Reuters) - Greece's recent moves to prepare for a debt restructuring have not triggered a payout on credit default swaps, the International Swaps and Derivatives Association said on Thursday.
However, a credit event is still widely expected if Greece uses recently approved legislation enabling it to force its debt restructuring upon all of its private creditors. This could happen shortly after the window for the restructuring deal closes on March 8.
ISDA's Thursday ruling means holders of these insurance contracts, worth a net $3.25 billion, will not receive payment at this stage, though further rulings based on any new questions are still possible.
"The situation in the Hellenic Republic is still evolving and today's EMEA (determinations committee) decisions do not affect the right or ability of market participants to submit further questions," ISDA said in their statement.
My view:
Keep your stops tight if trading, as this situation could still surprise us to the downside.
My suspicion is we are very close to a market top currently, of course the tinkering of the Fed and Euro Feds should not be underestimated.
I am keeping close watch on the volatility index.
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