Greek Default Looms as Voluntary Debt Deal Looks Set To Fail !

• It will be interesting to see what type of rabbit the ISDA will pull out of its ass to declare a default not to be a credit event – default ! If they declare it is a default all the CDSs will be triggered and the banksters will have to pay out billions of dollars. If they don’t, then nobody will want to buy CDS any more since it doesn’t provide any insurance protection against default. The CDS market will tank and all existing CDSs may just become worthless pieces of paper. The banksters will lose billions of dollars in profit from the selling of CDSs each year. Either way, we live in interesting times!
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  Greek default looms as voluntary debt deal looks set to fail ! 
  By Louise Armitstead, http://www.telegraph.co.uk/ 
  European leaders are braced for the eurozone’s first ever sovereign default this week as Greece’s efforts to secure a €206bn (£172bn) “voluntary” bond swap looks increasingly unlikely.
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  Authorities in Athens are ready to enforce the controversial collective action clauses, or CACs, to impose the restructuring deal on all bondholders as the number of voluntary agreements look set to fall short of the required amount.
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  Credit rating agencies have warned they will declare Athens to be in default if the CACs are triggered which would be a dramatic culmination to a three-year rollercoaster ride for Athens, the eurozone and global markets.
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  While the markets have been ready for a Greek default for months, the move could leave Greece and its banks barred from funding from the European Central Bank (ECB). On Monday, Standard & Poor’s declared Greece to be in a state of “selective default” which led to the ECB announcing it would no longer accept Greek government bonds as security for new loans.
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  The rating agency said its decision had been prompted by the threat of the CACs and the actual use of them is likely to tip Greece into actual default. The agency said it regarded the process as a “distressed debt restructuring”.
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  Raoul Ruparel of Open Europe, the London-based think-tank, said: “Greece is likely to struggle to reach the targets for a voluntary agreement so the credit rating agencies are almost certainly going to see this as a default.
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  … for more click here!

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