NEW YORK, Aug 21 (IFR) - The International Swaps and Derivatives Association (ISDA) will include two Japanese-law restructured bonds in the list of deliverable securities for an upcoming auction to settle Argentina’s credit default swaps.
In a 14-to-1 vote, members of ISDA’s determinations committee decided to consider the notes “deliverable obligations,” rejecting a challenge that they should be left out.
A representative for Pacific Investment Management Co (PIMCO) was the only member who opposed the decision, according to a note posted on ISDA’s website.
The challenge to the inclusion of the two notes caused ISDA to postpone the date of the auction until after September 2.
The auction, run by Creditex and Markit, will determine the payout that holders of protection on Argentine bonds will receive as a result of the sovereign’s default on July 30.
Reporting by Davide Scigliuzzo; Editing by Paul Kilby