ISDA consults on proposal to add credit event for CDS

ISDA is looking into adding another credit event that would trigger payouts on credit default swaps. "The background regime for credit instruments is changing at the moment with the introduction of recovery and resolution regimes, enabling regulatory authorities to write down bank debt to avoid bankruptcies," said Mark New, assistant general counsel at ISDA. "This proposal introduces a new credit event for financials to address this new regime, by CDS triggering on a bail-in-type event."

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International Financing Review (free content) · Wall Street Journal, The

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