ISDA Declares Argentina in Default, Triggering CDS Payouts

The International Swaps and Derivatives Association's (ISDA) Americas Credit Derivatives Determinations Committee has voted unanimously that Argentina defaulted, which will trigger credit default swaps (CDS) payouts.
By Jake Safane(2147484770)
The International Swaps and Derivatives Association’s (ISDA) Americas Credit Derivatives Determinations Committee has voted unanimously that Argentina defaulted, which will trigger credit default swaps (CDS) payouts.

The 15-member committee voted on Friday that a failure to pay credit event occurred with respect to Argentina not making its debt payments to hedge funds, as the country wanted to restructure its debt prior to the payment deadline of July 30. As a result of the default, ISDA will hold an auction in respect of outstanding CDS transactions.

The committee will meet again on Monday, August 4th, to further review the issue.

The committee consists of Bank of America, Barclays, BlueMountain Capital, BNP Paribas, Citibank, Credit Suisse, D.E. Shaw Deutsche Bank, Eaton Vance, Elliott Management, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Nomura and PIMCO.

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