26 Feb 2009, Donna Haws , Risk magazine
Because the auction procedure is not hardwired in the standard CDS contract, protocols are required to cash settle CDS and LCDS trades. The company breached its loan agreements with the Royal Bank of Scotland, triggering a credit event.
This was the third-ever cash settlement auction held on European LCDS.
© Incisive Media Investments Limited 2013, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093