Derivatives Intelligence (part of Institutional Investor) reports that the International Swaps and Derivatives Association has determined that Greece has triggered a credit event as part of its debt restructuring.This would provoke credit default swaps—insurance contracts on Greek bonds issued under Greek law—to be paid out.
But we don’t know why they have this and nobody else does, and we can’t confirm. Therefore, we have certain misgivings about the veracity of this report. While everyone expects that this will be the outcome, the report is not currently out.
ISDA’s committee met today to discuss the issue, and said it would issue a statement on whether or not a credit event had occurred once Greece formally activated the collective action clauses it recently inserted into its Greek debt issuances.
Consensus is that activating the CACs will indeed provoke a credit event, however analysts have been waiting all day for a decision to be published here, to no avail (yet).
UPDATE: Lauren Dobbs, a spokesperson for ISDA in New York denied the veracity of this report in a phone interview with Business Insider. They have yet to make any official announcement on the credit event.