ISDA To Rule On RadioShack Corporation (RSH) CDS

RadioShack Corporation (NYSE:RSH) could be found in default on its loan obligations, triggering credit default swaps obligations that could cost those who insure the risky derivatives $584 million.

ISDA to determine RadioShack's outstanding swaps

The International Swaps & Derivatives Association, the ruling body on the matter, is set to determine if RadioShack Corporation could rule on $25.5 billion of outstanding swaps contracts after the retailer may have experienced a credit event that would technically throw it into default status. Even if ISDA ruled on the retailer was in default, the payout would amount to $584 million in actual claims after overlapping trades are accounted for, a Bloomberg report by Sridhar Natarajan and Jodi Xu Klein said, citing the Depository...