SSD privacy hampers deliverability with CDS auctions

By Owen Sanderson, Silas Brown
07 Dec 2020

Whether or not Schuldschein debt is deliverable under CDS auctions is becoming more than an academic discussion, as analysts look to companies like travel firm Tui’s financial future. While the instrument fits the criteria as relevant debt for a CDS auction, the private nature of the contract could prevent the Determinations Committee from ruling.

 As far as several market sources are aware, no Schuldschein contract has been presented to a Determinations Committee under a CDS auction. This is unsurprising, as the bulk of Schuldschein borrowers are investment grade or implied investment grade, and many do not have publicly traded debt.

But two ...

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