Isda muddies debt waters

The International Swaps and Derivatives Association (Isda) has finally released its 2003 credit derivatives definitions, which take effect on March 17.

But many market participants will be disappointed that the definitions appear to do little to resolve the long-standing debate over whether debt restructuring should constitute a credit event.

Traders eager for liquidity had hoped that a single global standard would emerge, but the definitions have instead introduced another version of the restructuring trigger. Market participants are left with four choices for CDS contract documentation: no restructuring, full restructuring, modified

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