Norris: Greek credit event would be a plus for bond markets

A credit event in Greece triggering CDS protection payouts would be positive for peripheral bonds, according to Argonaut's Barry Norris, as investors are more likely to buy them with the comfort of insurance.

The International Swaps and Derivatives Association (ISDA) is meeting at 1pm to determine whether the Greek debt swap deal, which was sealed this morning, was a credit event. If it is, investors holding credit default swaps against Greek government debt will receive insurance payouts. However there are concerns this may be unfair at a time when many holders of the debt are writing off large sums so Greece can reduce its  debt pile and guarantee funding from the IMF in a further bailout package. "It will be a positive for markets if the CDS are triggered as it shows the CDS market, ...