In light of today’s EMEA Determinations Committee (the EMEA DC) unanimous decision in respect of the potential Credit Event question relating to The Hellenic Republic (DC Issue 2012030901), the EMEA DC has agreed to publish the following statement:
The EMEA DC resolved that a Restructuring Credit Event has occurred under Section 4.7 of the ISDA
2003 Credit Derivatives Definitions (as amended by the July 2009 Supplement) (the 2003 Definitions)
following the exercise by The Hellenic Republic of collective action clauses to amend the terms of Greek
law governed bonds issued by The Hellenic Republic (the Affected Bonds) such that the right of all
holders of the Affected Bonds to receive payments has been reduced.
-from the EMEA DC Statement of March 9, 2012, as reported upon and linked to by Forbes. Thanks to Instapundit, who calls this "Disturbing."
I noted that this was coming a few days ago.
My hope is that the market knew this was coming and has already adjusted to it. On the other hand, because of the delay caused by governments who think they can manipulate that market, the inevitable consequences may be quite aggravated.