Greece default to trigger insurance payouts

[bijou]

The International Swaps and Derivatives Association, a private organization that rules on credit events, ruled Friday that Greece has officially defaulted on its debt.

While hardly news and widely-expected, the decision that what the ISDA calls a restructuring credit event has occurred will trigger the payment of Credit Default Swaps, which is essentially insurance against a default.

Those payouts on CDS linked to Greece are expected to be something the order of $3.2 billion US.

The ruling came after the country secured a strong majority of private creditors to participate in the biggest national debt writedown in history, bond swap deal that will wipe off about €105 billion from its national debt.  ...

http://www.cbc.ca/news/business/story/2012/03/09/greece-debt-swap-cds.html

[JohnnyReb]

http://www.cbc.ca/news/business/story/2012/03/09/greece-debt-swap-cds.html

Just like what Obama wants to do...run up a hugedebt...20/25 trillion buying votes....declare bankruptcy...thereby robbing the rich and giving to his voter bass....and then we all strave....except Obama and friends....and anywhere in Africa will look like better place to live than the U.S. of A..