BUSINESS
03/01/2012 08:50 am ET

How A Greece Default Could Kill The Sovereign Credit Default Swap Market

Alea today posts the timeline for physical settlement of credit default swaps, once a credit event has been declared. He doesn’t say why he’s posting it, but the main thing to note is that it’s likely to take a couple of months between (a) the credit event being declared in Greece, and (b) the final settlement of all credit default swaps on Greece.

And that, in turn, reveals a significant weakness in the architecture of CDS documentation.

Read more on Reuters

-

CONVERSATIONS