A panel of credit derivatives bankers suggested that the debate over including restructuring as a credit event could result in a dually-priced credit-default swaps market in which investors pay more to include restructuring as a credit event (see the Learning Curve for more about the cost of restructuring).
Richard Williams, head of asset management and risk transfer at Abbey National Treasury Services in London, said that, "[Restructuring] will always be a risk." "The key point is that investors should not be forced into a particular contract."
Pierre Mathieu, head of credit derivatives flow trading at BNP Paribas, said that regardless of whether a loan house needs restructuring for regulatory purposes, the clause still covers an economic risk and is of use to protection buyers. Robert Heathcote, managing director at Goldman Sachs in London, added that hedgers should be given a choice.
