#1 Greece Default Is Official; Insurance Payouts Triggered03-09-2012, 06:07 PM
A group representing dealers in credit default swaps decided Friday that Greek's bond swap constitutes a "credit event" that entitles holders of Greek credit default swaps to compensation.The "yes" vote by the International Swaps and Derivatives Association triggers roughly $3.2 billion in CDS, which are insurance policies that pay out if a bond issuer defaults. That amount is actually much smaller than many had feared.Scott E. Barbour | Getty Images
The decision was widely expected, and stocks were slightly down after the announcement.
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