Preliminary results of today’s auction on credit default swaps (CDS) on defaulted Greek debt indicate that CDS holders will receive 78.25 eurocents for each euro of face value. The auction has set the fair value of the CDS and will use that price to settle the swaps. The final results are due at 11:30 ET, but there is no expectation that the payout rate will change significantly.
Based on the expected number of CDS included in the auction, the total payout is projected to be around $2.5 billion, which is about what was expected and, in the grand scheme of things, not very much. The more important issue, at least from the point of view of CDS traders, is that the market for CDS has been preserved.
Sponsored: Want to Retire Early? Start Here
Want retirement to come a few years earlier than you’d planned? Orare you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
