Isda has published the provisional list of deliverable obligations necessary for auction settlement on media and electronics firm Thomson.
The Isda credit derivatives determinations committee ruled on August 12 that a restructuring credit event had occurred with respect to Thomson, and dealers had initially expected the deliverables to be published within a fortnight.
Much of Thomson’s €2.84 billion debt is privately placed, the company says, so it has taken the determinations committee longer than expected to source the necessary information on the deliverables.
According to the preliminary list posted on the Isda website, there are 12 possible bonds and loans deliverable into CDS contracts referencing Thomson and they fall into three of the eight maturity buckets created by the recent Small Bang protocol. They are the two-and-a-half year bucket, the five-year bucket and the seven-and-a-half year bucket.
Once the contracts have been triggered, auctions can be held to determine the recovery rates. If no bonds or loans with longer maturities are added to the preliminary list, there will be three separate auctions, one for each of the maturity buckets.
More on Clearing
CNY swaps and forwards can be cleared from November on SCH
BCBS publishes new approach for calculating default fund margins
Fresh uncertainty over Esma's recognition of KRX's OTC clearing house
Systemic risk in the clearing house
Loomis Sayles vice-chairman discusses the US credit markets
The US has recovered from recession but still faces an enormous debt burden. The onus is now on companies to pick up the slack in the economy and keep bonds buoyant
The head of European credit portfolio management at Pimco talks to Credit's Alex Monro about the ongoing Eurozone crisis, and the likely investment themes for 2011.
The European securitisation markets were among the hardest hit by the financial crisis: large losses on a range of securitised products led to a drop-off in investor demand, while prohibitive spreads made...
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.