Bond dealers, investment firms to rule on Sharp's credit swaps

Case puts spotlight on when credit-default contracts in Japan can be called upon to pay out

New York

BOND dealers and investment firms will rule on whether buyers of derivatives protecting against a default by Sharp Corp will receive payouts after the electronics maker amended loan terms, putting attention again on how Wall Street-born swap agreements work in Japan.

The International Swaps & Derivatives Association (ISDA) said that its determinations committee has accepted a request to decide whether a so-called restructuring credit event occurred, according to its website. A market participant...

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