International Swaps and Derivatives Association
Discussion
This international finance stuff is a bit complicated!
"t is extremely unlikely that Greece will declare an all-out default on its sovereign debt and its government will probably, with IMF (Berlin: MXG1.BE - news) and EU support, agree some kind of “restructuring” deal.
Deciding whether this constitutes a default is the job of the International Swaps and Derivatives Association, the representative body of the derivatives market that designs the contracts under which product such as CDS are issued.
The confidentiality surrounding this process is extremely tight and law firms involved in the process will not discuss the issue, even on background."
source
Why the secrecy? Surely it would be better if it's all out in the open.
"t is extremely unlikely that Greece will declare an all-out default on its sovereign debt and its government will probably, with IMF (Berlin: MXG1.BE - news) and EU support, agree some kind of “restructuring” deal.
Deciding whether this constitutes a default is the job of the International Swaps and Derivatives Association, the representative body of the derivatives market that designs the contracts under which product such as CDS are issued.
The confidentiality surrounding this process is extremely tight and law firms involved in the process will not discuss the issue, even on background."
source
Why the secrecy? Surely it would be better if it's all out in the open.
So this shady version of the pools panel have decided that Irish banks are bust.
"The International Swaps and Derivatives Association (ISDA) yesterday said that a "credit event" had occurred on Allied debt, meaning the bank has effectively defaulted on its debt, a situation the Irish government has gone to extreme lengths to avoid.
Credit default swaps (CDS) sold on Allied subordinated bonds and, crucially, its senior debt, have been activated by the decision of the ISDA determinations committee that decides whether a borrower has defaulted.
The decision by the committee, which is made up of 10 major banks, follows the announcement earlier this month by the Irish High Court of a "subordinated liabilities order" that changed the terms under which junior debt in Allied was originally sold, forcing holders of the bonds to accept an extension in the maturity of the debt to 2035.
Allied had already missed a coupon payment on its Lower Tier 2 debt. However, changes in the law enabled the bank to avoid being forced to be formally placed in default."
http://www.telegraph.co.uk/finance/newsbysector/ba...
"The International Swaps and Derivatives Association (ISDA) yesterday said that a "credit event" had occurred on Allied debt, meaning the bank has effectively defaulted on its debt, a situation the Irish government has gone to extreme lengths to avoid.
Credit default swaps (CDS) sold on Allied subordinated bonds and, crucially, its senior debt, have been activated by the decision of the ISDA determinations committee that decides whether a borrower has defaulted.
The decision by the committee, which is made up of 10 major banks, follows the announcement earlier this month by the Irish High Court of a "subordinated liabilities order" that changed the terms under which junior debt in Allied was originally sold, forcing holders of the bonds to accept an extension in the maturity of the debt to 2035.
Allied had already missed a coupon payment on its Lower Tier 2 debt. However, changes in the law enabled the bank to avoid being forced to be formally placed in default."
http://www.telegraph.co.uk/finance/newsbysector/ba...
fido said:
Nothing new. Ditto with Railtrack a couple of years ago.
Even though the subsidiary defaulted, the parent company Railtrack Group plc did not go into administration, so holders of the 'wrong' CDS got diddly.
Don't organizations who buy CDS products employee very bright individuals to ensure that doesn't/shouldn't happen?Even though the subsidiary defaulted, the parent company Railtrack Group plc did not go into administration, so holders of the 'wrong' CDS got diddly.
NoelWatson said:
Fittster said:
fido said:
Nothing new. Ditto with Railtrack a couple of years ago.
Even though the subsidiary defaulted, the parent company Railtrack Group plc did not go into administration, so holders of the 'wrong' CDS got diddly.
Don't organizations who buy CDS products employee very bright individuals to ensure that doesn't/shouldn't happen?Even though the subsidiary defaulted, the parent company Railtrack Group plc did not go into administration, so holders of the 'wrong' CDS got diddly.
If you have bought a CDS product and it doesn't work surely you haven't paid for the right thing?
"There was dismay last week over speculation that the terms of the Greek bail-out deal, which will require investors to take a 50pc haircut on the face value of their holdings, would not result in the triggering of CDS contracts. The ISDA said it was not likely the deal would result in CDS claims being allowed."
http://www.telegraph.co.uk/finance/financialcrisis...
http://www.telegraph.co.uk/finance/financialcrisis...
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