Personally I don’t think it will be a Credit Event at this stage. They have tried to make the new ECB bonds as similar as possible to the old bonds. Is not being subjected to a law the same as being made senior? I think it is worth a shot, but not sure it wins. On the other hand, English law bonds which have pari passu clauses and some tender protection may have a case for an event of default under their bonds- which would then trigger ISDA.
In any case, even if ISDA says this “subordination” is not a Credit Event, they will likely make clear (again) that triggering CAC’s would be a Credit Event.
Alphaville: Isda Greece credit event around here?
2012-02-27 18:44:45.253 GMT
Has Greece CDS been triggered? The question’s finally been posed to Isda’s determination committee and is currently pending: It’s quite a long one. Supporting docs here. This entry was posted by Joseph Cotterill on Monday, February 27th, 2012 …