Haircuts Could Doom CDS, Say Bankers

26 Oct 2011

Bankers have expressed concern that if banks are forced to take hefty haircuts on Greek debt without it triggering a payout of credit default swaps, it could spell the end of CDS.

Bankers have expressed concern that if banks are forced to take hefty haircuts on Greek debt without it triggering a payout of credit default swaps, it could spell the end of CDS. They also say that the ban on naked CDS could have a negative impact on liquidity.

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