If the market believed the ISDA is not going to trigger CDS, they would be plunging after the decision, yet they’re trading flat to slightly higher.
Today’s ruling from the ISDA on Greek credit default swaps clearly left open the possibility of further rulings, either after the collective action clauses are implemented or someone isn’t paid out on March 20.
The situation in the Hellenic Republic is still evolving and today’s EMEA DC decisions do not affect the right or ability of market participants to submit further questions to the EMEA DC relating to the Hellenic Republic nor is it an expression of the EMEA DC’s view as to whether a Credit Event could occur at a later date, in each case, as further facts come to light.
The WSJ has more on why this decision isn’t the final word.
