(Bloomberg) -- Banks including Morgan Stanley,
JPMorgan Chase & Co. and Goldman Sachs Group Inc. published
rules for credit-default swaps on loans in Europe, ending an
impasse that reduced trading for the past nine months.
The contracts, used to speculate on the ability of
companies to repay their loans, will follow U.S. guidelines and
transfer to new debt when a company refinances, the
International Swaps & Derivatives Association said today in an
e-mailed statement. The buyer and seller can still agree to
follow current rules in Europe instead, and allow the loan
credit-default swaps to be canceled when the reference company
refinances, ISDA said.
Read more at Bloomberg Bonds News
JPMorgan Chase & Co. and Goldman Sachs Group Inc. published
rules for credit-default swaps on loans in Europe, ending an
impasse that reduced trading for the past nine months.
The contracts, used to speculate on the ability of
companies to repay their loans, will follow U.S. guidelines and
transfer to new debt when a company refinances, the
International Swaps & Derivatives Association said today in an
e-mailed statement. The buyer and seller can still agree to
follow current rules in Europe instead, and allow the loan
credit-default swaps to be canceled when the reference company
refinances, ISDA said.
Read more at Bloomberg Bonds News
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