October 20, 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.