UBS calls on Swaps Association to ask if a “failure to pay” event had occurred

Friday, August 1st 2014 - 08:42 UTC

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The International Swaps and Derivatives Association (ISDA) said on Thursday it had received its first request to consider whether a credit event had occurred, according to the ISDA website. Read full article

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The International Swaps and Derivatives Association (ISDA) today effectively declared Argentina in default, setting in motion a process that could trigger payments worth up to USD1bn on credit default swaps.

ISDA's 15-member determinations committee decided that a “failure to pay” event has occurred on the contracts on July 30, the day Argentina missed a coupon payment on some of its restructured foreign-law bonds.

The deliberation, which needed an 80% majority to go through, was prompted by a request submitted on Thursday by Swiss bank UBS.

Taken from the BA Herald.
Aug 01st, 2014 - 07:29 pm - Link - Report abuse 0
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ChrisR
It's a bit like asking turkeys to vote for Christmas asking the insureres to vote a payout, even if some of them will benefit directly from it.
Aug 01st, 2014 - 08:56 pm - Link - Report abuse 0
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chronic
The ISDA board has a mixture of winners and losers on this matter. I'm surprised that the vote was 100% for as the finding is detrimental to some of their respective interests. Probably more perlexing to RG considering their “appreciation” for the rule of law.
Aug 02nd, 2014 - 06:25 pm - Link - Report abuse 0
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