Intrum auction gives CDS buyers minimal payout
Outcome seen as success for market that needed to adjust auction terms amid ongoing restructuring
Buyers of credit protection on Swedish debt collector Intrum will see a 24% payout on their derivatives contracts after a default auction earlier today (January 16), largely in line with the secondary bond prices – an outcome seen as positive given technical restrictions on many of the company’s bonds.
Used to set a price for settling credit default swap (CDS) contracts, the auction had confronted the presence of a creditor lock-up agreement that bars signatories from transferring debt to firms
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