Greek credit event has occurred, CDS payments triggered : source ISDA

Was thinking to do the post in the morning but had enough evidence to share it now.
The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its EMEA Credit Derivatives Determinations Committee resolved unanimously that a Restructuring Credit Event has occurred with respect to The Hellenic Republic (Greece).

The EMEA DC resolved that a Restructuring Credit Event has occurred under Section 4.7(a) of the ISDA 2003 Credit Derivatives Definitions (as amended by the July 2009 Supplement) 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 such that the right of all holders of the Affected Bonds to receive payments has been reduced. The details are available on ISDA website .

It means there will be a net $3.2bn pay-out on CDS contracts, Continue reading “Greek credit event has occurred, CDS payments triggered : source ISDA”

Financial Jargon’s Simplified :- Hats off to Dravid

I would like to dedicate today’s post to Rahul Dravid but the time is constraint will write for him soon :- I just don’t like  that  he is retiring, and people are talking about Sachin tendulkar! The Tragedy of his Life.  Few more thing for him If Sachin Tendulkar was the Best thing to happen to Indian Cricket :Rahul Dravid was the Best thing to happen to Sachin tendulkar. ( I think that describes all for him)

The post is  for my juniors, who wanted to have few jargon’s simplifications here you go :-

LEASE -BACK  :  Its an arrangement under which a company, in order to raise cash, sells a piece of equipment, ‘ land, or building on condition. that the buyer will lease it back to the seller for an agreed rental for a fixed term.

LEVERAGED BUYOUT : Taking over a company, using borrowed funds.

LEVERAGED COMPANY : If a company with borrowed funds in its capital structure. if the debt component is more than a third of the capitalization it’s called a highly leveraged company. Continue reading “Financial Jargon’s Simplified :- Hats off to Dravid”