Financial Times FT.com

LyondellBasell triggers CDS default

By Paul J Davies in London

Published: March 20 2009 20:15 | Last updated: March 20 2009 20:15

LyondellBasell’s missed payment on its European bonds triggered a default on the derivatives linked to the chemical company’s debt Friday, which for the first time will lead to big pay-outs on the popular derivative indices.

Holders of debt, such as investment banks, have to vote to decide whether an event constitutes a default on a credit default swap – which provides a kind of insurance against non-payment of corporate debt.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this