Short-Squeeze Risks Loom Again in CDS Markets

In Short:

The Situation: Fears of a potential short-squeeze in the upcoming Sears CDS auction have kicked off disputes in a variety of venues.

The Result: One of these disputes caused the fourth-ever convening of an ISDA CDS Determinations Committee external review panel and another made its way before the Sears bankruptcy court.

Filed under:
USA, Derivatives, Insolvency & Restructuring, Jones Day, Credit derivative, Credit default swap, International Swaps and Derivatives Association
Authors:
George J. Cahill , Locke R. McMurray , Jayant W. Tambe
Location:
USA
Firm:
Jones Day