Novo Banco credit event stumps ISDA and lawyers

By Dan Alderson
08 Jan 2016

The fate of credit default swaps referencing Novo Banco still hung in the balance on Friday, with ISDA’s Determinations Committee unable to decide after three days of wrangling whether the Portuguese bank had triggered a government intervention credit event or a succession event.

ISDA’s Determinations Committee (DC) first met on Wednesday to deliberate the credit event, with a succession event question added that day in relation to the transfer of five Novo Banco senior bonds to its bad bank Banco Espirito Santo (see separate cover story).

But the DC delayed ...

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