ISDA: Credit-default swaps would pay max of $3.6B if U.S. defaults

10/14/2013 | Bloomberg · Bloomberg

Source: Bloomberg

According to ISDA, if the U.S. government failed to come to an agreement on the debt ceiling, the sellers of credit-default swaps would pay as high as $3.6 billion. "That's the maximum potential payout there could possibly be, even if after the auction we would hold, the value of the U.S. government bonds was zero, which obviously wouldn't be the case," said David Geen, ISDA's general counsel.

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