The credit derivatives market is torn over the issue of restructuring as a credit event, but is urgently trying to reach a resolution before liquidity drops, according to International Swaps & Derivatives Association credit derivatives documentation task force meeting minutes obtained by DW. Players continue to be at odds regarding whether restructuring should be a credit event under standard quoted prices for credit default swap contracts, and if so, whether the language of the definition should be modified. Roughly 20 market participants, including Merrill Lynch, Morgan Stanley Dean Witter, and Abbey National Bank, aired their views at the December meeting in London and New York. A general discussion followed.
Click here for Task force meeting minutes.
