Credit-Default Swaps Work (See Greece); Eyes in the Sky vs. Privacy
By Jonathan Alter
Published March 15 2012 Bloomberg Businessweek
As it wrestled with Greece’s debt crisis for the past two years, the European Central Bank took pains to avoid triggering credit-default swaps written on Greek bonds. But on March 9, Greece forced payouts on swaps contracts when it required all private bondholders to forgive more than €100 billion ($130 million) of debt as part of the biggest sovereign-debt restructuring in history.
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