Country Garden’s Missed Bond Payment Triggers CDS Payout
- A 30-day grace period for bond interest ended last week
- Note’s trustee says coupon nonpayment an ‘event of default’
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Derivatives that protect against a default by Country Garden Holdings Co. were triggered after the troubled Chinese developer didn’t pay interest on a dollar bond.
The Credit Derivatives Determinations Committees, which oversee the credit default swaps market, ruled a failure-to-pay credit event occurred on Oct. 18, according to a notice posted Thursday. A meeting was held on Wednesday to deliberate on whether Country Garden missing a $15.4 million coupon payment triggered CDS payouts.