Jun 22, 2012
Regarding a new bail-in mechanism proposed under an EC directive for bank recovery and resolution, Assia Damianova says, "Doubts remain, under the proposed bail-in mechanism of the EC bank recovery and resolution directive about, the ability to trigger CDS where the write-down mechanism is laid out in the relevant bond documents; and about compliance with some of the deliverable obligation characteristics... The Credit Derivatives Definitions have to evolve to achieve predictability for market participants and a well-functioning market, where CDS fully hedge the credit risk in accordance with the parties' commercial intent."
Dorothy Auth, Danielle Tully, Michael Sebba
Joel Mitnick, Ngoc Hulbig
Kyle DeYoung, Lex Urban, Stephen Weiss