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A guide to the Greek CDS auction

Financial News looks at how Isda arrived at a price for Greek bonds as part of its credit default swap auction

Holders of Greek credit default swap contracts were told on Monday how much they could expect to be paid back after an auction to determine the ‘recovery value’ of the Mediterranean nation’s bonds. But what happened at this auction and what is it trying to determine?

Financial News spoke to a credit strategist and to the International Swaps and Derivatives Association to find the answers.

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