Apparently, a default

NCD — Sat, 10 Mar 2012 02:35:54 +0000

In reply to Moody's declares Greece in default of debt

Apparently, a default declaration is necessary for hedge funds to collect on their credit default swaps to make them whole and/or give them a profit on the deal. I believe with the new loans, Greece will actually owe more money than before the so-called 'debt relief' deal.

The decision to force losses on some bondholders means that the debt relief will trigger payouts of so-called credit default swaps, a type of insurance on bonds. The International Swaps and Derivatives Association, the private organization that rules on such cases, said its committee ruled that a "restructuring credit event" occurred.

dagblog - Comments for "Moody's declares Greece in default of debt"

Apparently, a default