DC rejects attempt to trigger Credit Suisse CDSs
Committee dismisses claims Swiss bank’s AT1s were not subordinated to the CDS reference entity
A group of banks and buy-side firms have ruled against a request that would have bucked market expectations and seen credit default swaps written on Credit Suisse pay out.
After two meetings this week, the Credit Derivatives Determinations Committee (DC) ruled that Swiss financial regulator Finma’s March writedown of Credit Suisse’s Additional Tier 1 bonds did not constitute a governmental intervention, and that the AT1s were not eligible to trigger a credit event on the Swiss bank’s
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