The International Swaps and Derivatives Association, which oversees credit derivatives, says its credibility remains intact following insurance payments on Greek debt.

“I think it (the value of CDS as a hedge against sovereign risk) is good,” David Green, ISDA’s general counsel, tells Reuters Insider. “I mean, we’ve shown that we actually do trigger when something happens. I think for a while people were saying CDS isn’t triggering, but they were looking at it in a situation where nothing had actually happened in terms of our contract.”

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