Swap Panel Gets Another Credit Suisse Query to Spark Payout

  • Question comes one day after CDDC dismissed another query
  • Ruling could trigger payout on both senior, subordinated CDS
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A day after dismissing a question that would have forced a payout on some of Credit Suisse Group AG’s default swaps, a panel that oversees the derivatives market received another query that could trigger the contracts.

The Credit Derivatives Determinations Committee was asked whether a bankruptcy credit event had occurred with regards to the Swiss lender in March, when it was taken over in a hastily arranged deal by rival UBS Group AG, according to a statement on its website.