US determinations committee announces credit event for CIT

The International Swaps and Derivatives Association today announced that its North American credit derivatives determinations committee has voted to hold an auction for credit default swap transactions referencing commercial finance firm CIT. After a long battle, CIT finally filed for chapter 11 bankruptcy at the US bankruptcy court for the southern district of New York on 1 November.

The auction will be administered by Markit and Creditex, and Isda will publish the auction terms on its website, www.isda.org/credit, in due course. No date has been finalised for the auction.