Yesterday (8/3/12) I believe 85% of Greece's creditors agreed to write of 70% of Greek Sovereign debt they hold. At around 20:00 on 9/3/12 CNBC are reporting that the International Swaps and Derivatives Association (ISDA) who govern this sort of thing has ruled that yesterday's deal does constitute a Sovereign debt default.
In terms of Greece this is pretty much meaningless. However it means that those creditors who signed up to yesterday's deal who have credit insurance (Credit Default Swaps) will receive payment. It is still not clear whether or not the 15% of creditors who didn't sign up will also be paid. This is a very long and complicated story about the moral hazard presented by insurance into which Britain is trying to find guidance about payment for August 2011's riots.
Like I said - my entire weekend ruined.
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