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list1
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Repudiation/Moratorium

December 18th, 2015, 3:26 pm

5. Repudiation/Moratorium is defined on ISDA as deals with the situation where the reference entity or a governmental authority disaffirms, disclaims or otherwise challenges the validity of the relevant obligation. A default requirement threshold is specified..In a deal we have a creditor and a borrower. In a correspondent credit event it seems that the borrower initially declared repudiation implies that borrower is not going to make due to day payment and then borrower and creditor may agree for moratorium which implies extension for payment(s) which probably signifies moratorium. My question is how does this credit event exists in real life?
Last edited by list1 on June 14th, 2016, 10:00 pm, edited 1 time in total.
 
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MattF
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Repudiation/Moratorium

June 15th, 2016, 8:22 am

It's unclear what you're asking.If you're talking about CDS's then there is a buyer and seller of protection. If the reference entity repudiates its debt ("these bonds were issued by the false government before the Revolution and are nothing to with us") or declares a moratorium ("we'll pay one day but right now we're broke") then the buyer of protection would receive money from the seller.
 
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list1
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Repudiation/Moratorium

June 15th, 2016, 9:42 am

It might be relevant to present a real world an example like Greece or a current situation between Ukraine and Russia. Ukraine due to pay the $3bln for their bonds and refused to pay whether it is a repudiation. They apply to court in London whether court will make a decision about repudiation and moratorium?
 
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bearish
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Repudiation/Moratorium

June 15th, 2016, 5:47 pm

QuoteOriginally posted by: list1It might be relevant to present a real world an example like Greece or a current situation between Ukraine and Russia. Ukraine due to pay the $3bln for their bonds and refused to pay whether it is a repudiation. They apply to court in London whether court will make a decision about repudiation and moratorium?Ukraine was deemed a credit event by ISDA, and an auction was held on October 6, 2015, to determine the recovery amount (80.625%). Greece likewise, on March 19, 2012 (21.5%).
 
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list1
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Repudiation/Moratorium

June 15th, 2016, 9:23 pm

QuoteOriginally posted by: bearishQuoteOriginally posted by: list1It might be relevant to present a real world an example like Greece or a current situation between Ukraine and Russia. Ukraine due to pay the $3bln for their bonds and refused to pay whether it is a repudiation. They apply to court in London whether court will make a decision about repudiation and moratorium?Ukraine was deemed a credit event by ISDA, and an auction was held on October 6, 2015, to determine the recovery amount (80.625%). Greece likewise, on March 19, 2012 (21.5%).Thanks, bearish. What does the next step to settle credit event in these particular cases?
 
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bearish
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Repudiation/Moratorium

June 15th, 2016, 9:38 pm

QuoteOriginally posted by: list1QuoteOriginally posted by: bearishQuoteOriginally posted by: list1It might be relevant to present a real world an example like Greece or a current situation between Ukraine and Russia. Ukraine due to pay the $3bln for their bonds and refused to pay whether it is a repudiation. They apply to court in London whether court will make a decision about repudiation and moratorium?Ukraine was deemed a credit event by ISDA, and an auction was held on October 6, 2015, to determine the recovery amount (80.625%). Greece likewise, on March 19, 2012 (21.5%).Thanks, bearish. What does the next step to settle credit event in these particular cases?They were settled a long time ago. History.
 
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list1
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Repudiation/Moratorium

June 15th, 2016, 10:54 pm

thank you