Russia sanctions could trip up CDS markets, lawyers warn

New sanctions on specific companies could trigger CDSs and complicate settlement


The extension of European and US sanctions on Russia to include a number of banks and energy companies could trigger defaults on the companies' foreign currency bond issues, lawyers are warning – and could also make it difficult for firms that are holding credit default swap (CDS) protection on those names to settle the trades. That is because the sanctions – which bar European Union and US firms and individuals from making economic resources available to, or for the benefit of, a