New Look CDS pays out in full

New Look
By Owen Sanderson
06 Jun 2019

Credit default swaps on UK retailer New Look will pay out 100% of notional, after an auction on Wednesday attracted no buying interest at all, leaving a final price of zero, an event almost without precedent.

Such an outcome is rare in a CDS auction, as debt holders usually have some recovery value against the defaulter in question, which tends to result in CDS contracts settling at less than the full notional value. 

Banco Popular Espanol’s subordinated CDS achieved the same result after regulators placed ...

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