ISDA's Determinations Committee recently decided that Codere, a Spanish gaming company, is facing a failure-to-pay credit event after missing a bond payment. The ruling has prompted debate about what constitutes a default, triggering payment on credit default swaps. "CDS tends to be in the limelight when there's a slight functional mismatch between what is expected and what actually happened," Citigroup credit strategist Michael Hampden-Turner said. "While many people expect it to act like an insurance contract, it's actually a derivatives contract with a distinct set of rules."

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