2 comments on “Timmy elsewhere

  1. Have commented at ASI – here’s a copy of my comment:

    “And of course, had ISDA declared a credit event on the basis of the terms of the PSI deal, that would have scuppered the deal itself. No bondholder in their right mind would agree to participate if a credit event had already been declared, would they? They’d sit tight and wait for the inevitable CDS payout. I don’t see that ISDA had any choice but to say “No” and force bondholders to take the risk that there may be no credit event at all and they may not get their payout. Without that uncertainty, the PSI deal is dead in the water. “

  2. The logic of what ISDA has been saying is that it will declare a default when Greece uses its new Collective Action Clauses to force bond-holders to accept the PSI deal.

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