The deliberation, which needed an 80% majority to go through, was prompted by a request submitted on Thursday by Swiss bank UBS.

Friday, August 1, 2014

ISDA declares credit event on Argentina CDS

The International Swaps and Derivatives Association (ISDA) today effectively declared Argentina in default, setting in motion a process that could trigger payments worth up to USD1bn on credit default swaps.

ISDA's 15-member determinations committee decided that a "failure to pay" event has occurred on the contracts on July 30, the day Argentina missed a coupon payment on some of its restructured foreign-law bonds.

The deliberation, which needed an 80% majority to go through, was prompted by a request submitted on Thursday by Swiss bank UBS.