Deal of the century...

So, Greece has been saved - is that right? According to ISDA (the International Swaps and Derivatives Association) a "Restructuring Credit Event has occurred with respect to the Hellenic Republic" which in the vernacular means the Greeks are bust - tell us something we do not know.

The importance of this statement is that credit default swaps (CDS) on Greek debt are now triggered and holders will have their losses made good. There were any number of scurrilous rumours that ISDA would not declare a credit event to preclude its illustrious members from paying out, but when the net downside of $3bn needs to be shared out among the likes of Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan Chase, Morgan Stanley, UBS, BNP Paribas and Société Générale, then a quick whip round in the bar after close of business and the job’s a good ’un. The meeting wen...