Personal Opinion

Very Very important for the credibility of the Credit DefaulT Swaps:

This is an extremely important and vital rule.

As an expert, but with no material interest in this case, I would argue that the ISDA only has one option:

To rule in favour of the CDS being triggered by the rules introduced in 2014 to cover government or regulatory bail-ins of banks.

Any other decision would kill, for good, the Credit Default Swaps…

Why would anyone buy an insurance on an asset when the insurer always invents tricks not to pay compensation when the insured part goes under…?

The issuers of the Swap love collecting the Premiums but dislike paying the capital.

Vide the case of Banco Espirito Santo…

In the unlikely case ISDA would rule not to pay, it would effectively be the end of the Credit Default Swaps.

And, in that unlikely case, I would regard it as a mission to warn as many as possible market participants as I would can, on the unfair terms of this derivative.

And advise anyone against buying them full stop.

Francisco (Abouaf) de Curiel Marques Pereira

(Bloomberg) — Group accepts question on restructuring/governmental intervention credit event, according to website.

* NOTE: Ruling will decide if CDS payouts are triggered