09-07-2009, 08:05 PM
Hmmmmm - the British taxpayer is unfortunate enough to own Bradford & Bingley....
Quote:July 9 (Bloomberg) -- Bradford & Bingley Plc’s failure to pay interest on some of its subordinated bonds is a credit event, the International Swaps and Derivatives Association said.http://www.bloomberg.com/apps/news?pid=2...bpbqvFP.3s
The ruling will trigger credit-default swaps linked to the Bingley, England-based company. The contracts cover about $416.5 million of the nationalized mortgage lender’s debt, according to data from Depository Trust & Clearing Corp., which runs a central registry that captures most trading. The contracts will be settled in an auction.
Morgan Stanley asked for the ruling from a committee of default swaps dealers and investors after Bradford & Bingley last week missed the final deadline to pay interest on 125 million pounds ($202 million) of 6.625 percent subordinated bonds maturing 2023.
The lender, which was taken over by the U.K. government in September, missed a payment due on June 16 and the 14-day grace period expired without the interest being paid. The lender said in May it didn’t intend to pay interest on the notes, which form part of its so-called lower Tier 2 capital.
Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements.
"It means this War was never political at all, the politics was all theatre, all just to keep the people distracted...."
"Proverbs for Paranoids 4: You hide, They seek."
"They are in Love. Fuck the War."
Gravity's Rainbow, Thomas Pynchon
"Ccollanan Pachacamac ricuy auccacunac yahuarniy hichascancuta."
The last words of the last Inka, Tupac Amaru, led to the gallows by men of god & dogs of war
"Proverbs for Paranoids 4: You hide, They seek."
"They are in Love. Fuck the War."
Gravity's Rainbow, Thomas Pynchon
"Ccollanan Pachacamac ricuy auccacunac yahuarniy hichascancuta."
The last words of the last Inka, Tupac Amaru, led to the gallows by men of god & dogs of war