Forex Flash: ISDA announcement does not change a great deal in reality - UBS

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FXstreet.com (Barcelona) - ISDA announced that the terms of the Greek debt swap did so far not constitute a credit event so there will be no payout.

However, according to UBS analyst Chris Walker, "the important point is that this decision has been made on the current terms and the decision can change if, for example, collective action clauses are added to the debt swap."

The team at UBS continues to believe that "private sector participation will not be high enough to avoid CAC's and therefore the ISDA announcement does not change a great deal in reality."

"The market's failure to react to the news was therefore understandable and the broader impact of a CDS event will not be known probably for another week or so (until the CAC's are introduced)" Chris adds.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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