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Credit determinations committee agrees to look into Russia's potential failure to pay

Russia made a payment due on April 4 on two sovereign bonds in roubles rather than the dollars it was mandated to pay under the terms of the instruments.

Credit Default Swaps (CDS) are a way of insuring the buyer against exposure to specific risks, in this case Russia defaulting on its sovereign debt.

The process starts with a market participant, usually an investor who has bought such protection, asking the CDDC to decide whether a potential failure to pay event has happened.

The committee has accepted the request and has scheduled a meeting for Wednesday at 11 am GMT, according to its website.

Investment bank JPMorgan (NYSE:JPM) said in a note on Monday that there were currently $3.43 billion of net notional Russia CDS to be settled, including $2.48 billion from single name and the remainder from CDS indexes.


Source: Economy - investing.com

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