London (Reuters) – The next meeting of a key group of bond market participants will be on June 8 (https://www.cdsdeterminationscommittees.org/cds/the-russian-federation-3) to decide how credit default swaps, which are insurance policies that pay out if Russia’s debts go bad, should work.
The Credit Derivatives Determinations Committee, which is its official name, decided last week that Russia had caused a “credit event” by not paying nearly $1.9 million in interest on a sovereign bond that came due earlier this year.
According to calculations by JPMorgan (NYSE:JPM), there are currently $2.38 billion worth of net notional CDS in Russia. Of this amount, $1.52 billion is for the country itself and the rest is for the CDX.EM index.
