Default Seen Averted in Swaps by Greek Failure to Pay IMF
Sans Miracle Greece Will Miss IMF Payment: Gallo
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Analysts and traders see little chance that Greece’s failure to pay $1.7 billion to the International Monetary Fund will trigger payouts on credit-default swaps.
The IMF loan is excluded from derivatives insuring Greek sovereign debt because it predates a 2012 cutoff, according to JPMorgan Chase & Co. and Barclays Plc. It’s also a bilateral agreement that doesn’t prompt cross defaults on government bonds, according to Royal Bank of Scotland Group Plc.