Topic: Credit Default Swaps

JPMorgan Chase lost at least $2 billion in its failed hedging strategy not only because it was sloppy, but because it grew too big in a rarified market of complex financial instruments that it had created.

Spain sold 3 billion euros ($3.9 billion) of bonds on Thursday, drawing strong support from investors flush with central bank funds casting off doubts for now the country will be able to stick to its deficit commitments.

Greece's Alpha Bank plans to convene a shareholders meeting to pull out of a planned merger with Eurobank because of the impact of Greece's bond swap deal on the banks, the lender said in a bourse filing on Wednesday.

Euro zone finance ministers will sign off on a second bailout package for Greece on Monday and shift their focus to Spain, whose government looks set to violate newly-agreed EU budget rules by missing its deficit target again this year.

The triggering of insurance payments on Greek sovereign debt should be a "non-issue" for the markets, as they will happen in an orderly fashion, a representative of the International Swaps and Derivatives Association (ISDA) told CNBC on Monday.

A group representing dealers in credit default swaps ruled that Friday's Greek bond swap constitutes a "credit event" that entitles holders of Greek CDS to compensation.

It would be wrong to assume that the euro zone has resolved Greece's sovereign debt crisis after the successful completion of the country's debt swap with its private creditors, German Finance Minister Wolfgang Schaeuble said on Friday.

The decision by a major derivatives agency not to declare a credit event on the writedown of Greek sovereign debt sets a bad precedent, Pimco co-founder Bill Gross told CNBC Thursday.

Greece has not triggered a payout on credit default swaps by its recent moves to prepare for a debt restructuring, the International Swaps and Derivatives Association said on Thursday.

The International Swaps and Derivatives Association, which represents leading delaers in credit default swaps, meets on Thursday to decide whether the Greek debt swap in which investors will be forced to accept write-downs on their holdings of Greek debt constitutes a "credit event" which entitles them to compensation.

The financial system could face a test this week as industry officials debate a provision of the Greek bailout, the New York Times reports.

Greece’s debt restructuring is dragging credit-default swaps back into the spotlight. The New York Times reports.

European Union diplomats and the European Parliament agreed on Thursday to overhaul regulation of the roughly $700 trillion derivatives market, a move that will make it easier to control one of the most opaque areas of finance.

Greek political leaders said they had clinched a deal on economic reforms and spending cuts needed to secure a second bailout, but euro zone finance ministers demanded more measures and a parliamentary seal of approval before providing the aid.