Ukraine's sovereign debt freeze to trigger CDS payments
LONDON, Aug 19 (Reuters) - A panel of investors on Friday determined Ukraine had triggered a restructuring event after a two-year sovereign debt freeze, and a default insurance known as Credit Default Swap (CDS) should be payed.
The Credit Derivatives Determinations Committee (CDDC) said that its members voted 'yes' to a question to determine whether a "Restructuring Credit Event" occurred with respect to Ukraine and that a CDS auction should be held, according to a statement on its website.
The committee still hasn't decided on the timing of the auction.
There are just over $220 million worth of CDS contracts linked to Ukraine’s debt, according to Depository Trust & Clearing Corporation (DTCC) data.
Bank of America, Goldman Sachs International and JPMorgan Chase Bank are some of the committee members who voted "yes" to the question.
The country's international creditors backed last week Kyiv's request for a two-year freeze on almost $20 billion of its sovereign debt.
Reporting by Jorgelina do Rosario; editing by Rodrigo Campos and Toby Chopra
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.