Credit Derivatives Determinations Committee rules that a “a failure to pay” credit event occurred

The Credit Derivatives Determinations Committee has ruled that “ a failure to pay” credit even occurred when the government didn’t pay a $42.5mn coupon.  Therefore, an auction of Zambia’s bonds will be held to determine the level of compensation CDS holders will receive. Meanwhile, the net outstanding CDS position to be settled is uncertain, with a source familiar with the matter saying that the Zambia volumes were too small and illiquid to make it into official clearing data.

Please click here to access the full Market Watch