ISDA slaps down 'narrowly tailored' credit events, sparks debate

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By Costas Mourselas
12 Apr 2018

The International Swaps and Derivatives Association (ISDA) responded scathingly to attempts by market participants to “narrowly” trigger credit events that result in favourable pay-outs to buyers of credit default swaps. Costas Mourselas reports.

Credit default swaps provide protection to counterparties holding underlying debt obligations but want to guarantee that they will get their money back. Similarly, speculators can buy or sell the contracts to bet on a company's ability to make good on its debt.  

ISDA’s board released a statement ...

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