On The Oh Thit Front:

The The International Swaps and Derivatives Association, which manages deliberates issues including Credit Events, CDS Auctions, Succession Events and other issues, has declared today that the collective-action clauses, or CACs, to amend to terms of Greece-issued bonds qualifies as a “credit event” for Greece.

The news follows a downgrade from Fitch who lowered Greece’s credit rating from C to “restricted default” Fitch’s previous commentary that the exchange would constitute a sovereign default event under the agency’s distressed debt exchange.

This ruling comes despite efforts to get a super-majority of 90% of bond holders to sign onto the deal, which experts said would then rule the swap deal a voluntary deal and prevent a credit event that would trigger a credit event.



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