Swaps On Greek Credit-Default Swaps Are Now Active

The International Swaps and Derivatives Association announced today that Greece’s debt restructuring will activate payouts on credit-default swaps. There had been speculation that the plan would not set off the swap payouts, a state of affairs that analysts said would reduce the effectiveness of the debt restructuring plan. Greece’s restructuring plan has started to be implemented in recent weeks. The Association said the swaps came into effect only today, Friday, after a move in passed by Greece’s Parliament to force losses on all of the country’s bondholders. The move was seen as key in...