Chillin' out till it needs to be funded
The EMEA Determinations committee that handled the thorny question decided to llet matters be for now asking investors to be sure to come back if anything else happened , bu tthat as of now there was no Credit event apparently avoiding a technical fact finding in a case that could set a precedent as Greece tries the modifications, written on the wrong side in a theoretical CDS contract and usually paid by movement in spread on the underlying risk, in this case Greek government default on Public debt bought by the ECB at discount to the market and also by private investors but settled (on going) on different terms for hedge fund and bank investors and ECB and other European institutions.
Bill Gross found many more supprters when he questioned the decision on CNBC
The determinations committee of ISDA, which decides on whether a credit event has occurred, is dominated by banks taking part in the debt swap, raising questions about its impartiality. BNP Paribas, Deutsche Bank and Société Générale are among the 10 banks on the panel along with five asset managers.
ISDA has already received two questions about whether Greece has triggered a credit event. The first deals with whether the ECB’s side deal to insulate its bond holdings from a debt swap has subordinated other bondholders. The second, which was lodged on Thursday just before ISDA met to determine the first, relates to the CACs law itself.(Financial Times)
Here’s where we parked the call before the decision: Europe: ISDA tackles the tough question of Default in the Greek swap