International Swaps and Derivatives Association To Rule On Greek CDS

Did the restructuring of Greek debt trigger a default? Based on S&P’s recent ratings notice, the answer is “yes”. But, the official determination is left to the obscure International Swaps and Derivatives Association which said it would look into the matter.

The organization said

The International Swaps and Derivatives Association, Inc. (ISDA), as secretary to the Determinations Committees (the DCs), today announced that a question relating to a potential credit event with respect to the Hellenic Republic has been submitted to, and subsequently accepted for consideration by, the EMEA Determinations Committee. In accordance with the Determinations Committee Rules, a meeting will be held at 11AM GMT on Thursday, March 1 to determine whether a credit event has occurred.

About $3.2 billion in CDS payouts are at stake.