Russia sanctions could trip up CDS markets, lawyers warn

New sanctions on specific companies could trigger CDSs and complicate settlement

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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