New-look CDS faces potential Greek test

摘要

Attempts by Greece's new anti-austerity government to secure a partial write-down of its €322bn debt pile could provide the first test for new asset package delivery rules included in new credit default swap definitions, raising the possibility of two separate auctions that could deliver very different recovery outcomes. Fears of a possible default scenario intensified last week as newly appointed finance ministry officials pushed for a debt relief package that would see the country's obligations cut in half.