The Credit Derivatives Decision Board (CDDC) ruled on the 1st that Russia violated the terms of debt payments. Insurance payments can occur for multi-billion dollar credit default swaps (CDS).
CDDC’s “default” credit event at CDS, saying Russia’s debt payments made in early May, later than originally planned, did not include additional interest of $ 1.9 million. Credit default) has occurredexplanationdid.
The unpaid interest is not very large, but all Russian CDSs sold due to this default payment are expected to be paid for up to $ 3.2 billion worth of CDS. The final settlement amount is likely to be determined by bidding. On the other hand, given the size of accrued interest and the fact that the principal has already been paid, the CDDC’s decision will not cause widespread defaults on Russian bonds.
Original title:Russia Fails to Meet Bond Obligations, Triggering Swaps Payout(excerpt)
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