Isda sets date for second Anglo CDS auction

Isda has announced that an auction to settle credit derivative trades for Anglo Irish Bank 2.5-year senior and subordinated credit default swaps will be held next week on Wednesday 2 February. On 4 January, Isda’s credit derivatives determinations committee called a second restructuring credit event on Anglo Irish, the first time it had ever triggered two identical credit events on the same reference entity.

The first restructuring event, which resulted in a settlement auction on 9 December, was triggered by the results of the Irish bank’s buy-back of two classes of subordinated bonds (maturing in 2014 and 2016). Last month’s auction of Anglo bonds resulted in a settlement price of 76 cents in the euro for senior obligations and just 18% of par for subordinated debt.