Greece's debt restructuring will prompt payouts on credit-default swaps tied to the country's government bonds.
Greece is preparing to overhaul its bonds next month, a restructuring that could potentially prompt payouts on credit-default swaps, the financial instruments that protect against losses on debt.
The swaps and derivatives association defended the instruments, saying the swaps' contracts always made it clear that a voluntary restructuring would not prompt payouts.
PAGE D8 BUSINESS DEBT INSURANCE IN GREECE MUST PAY OUT, RULING SAYS The International Swaps and Derivatives Association has ruled that Greece's debt restructuring will prompt payouts on credit-default swaps tied to the country's government bonds, ending months of speculation.
Greece is preparing to overhaul its bonds next month, a restructuring that could potentially prompt payouts on credit-default swaps, the financial instruments intended to protect against losses on debt.
NEW YORK TIMES Debt Insurance in Greece Must Pay Out, Ruling Says | The International Swaps and Derivatives Association ruled that Greece's debt restructuring would prompt payouts on credit-default swaps tied to the country's government bonds.
That's tantalizingly close to the $13.50 target, but not enough to prompt a payout.
In effect, the committee has to decide whether this constitutes the type of "subordination" for non-E.C.B. bondholders that would prompt a payout on Greek credit-default swaps.
Furthermore, if Congress were to enact some sort of overarching incentive for reduced emissions, such as a cap-and-trade system or, better yet, a carbon tax, many of the measures it is now contemplating would need no further prompting or payouts from politicians.Global warming is the problem, after all, and fuel economy just one part of the solution.
The screwup already cost the BBC's director general his job, and prompted hasty payouts from both the BBC and its rival ITV News.
