Learning English with JP Morgan: "Language Arbitrage"

Der jüngste "freiwillige Haircut" auf griechische Staatsanleihen in Höhe von 50% ist offenbar kein "Kreditereignis":

"Trotz des geplanten Schuldenerlasses für Griechenland werden Inhaber griechischer Staatsanleihen wohl keine Versicherungsleistungen für ihre Verluste erhalten. Der Derivateverband International Swaps and Derivatives Association (ISDA) werde die zwischen dem Bankenverband IIF und den Euro-Regierungen ausgehandelte Abschreibung von 50 Prozent auf hellenische Staatsanleihen wohl nicht als Kreditereignis werten, sagte ein ISDA-Rechtsexperte der Nachrichtenagentur Reuters. Nur wenn die ISDA ein solches Ereignis feststellt, werden Kreditausfallderivate (CDS) auf griechische Staatsanleihen fällig."

http://mobil.boerse-online.de/anleihen/nachrichten/:Schuldenerlass--Griechen-Glaeubiger-erhalten-kein-Geld-aus-CDS-Versicherungen/630913.html

Mish Shedlock kommentiert das und zitiert Janet Tavakoli:

"As previous sovereign problems have illustrated, the only way to buy protection is to rewrite the flawed ISDA “standard” document and agree to new more sensible terms, before concluding the initial trade. One has to first protect oneself from the ISDA cartel “standard” documentation before one can buy sovereign default protection, or any other protection for that matter.This isn’t the first time investors have been burned in the sovereign credit default swap market. Hedge funds Eternity Global Master Fund Ltd. and HBK Master Fund LP thought they purchased protection against an Argentina default and sued when J.P. Morgan refused to pay off on Argentina credit protection contracts they had purchased.At issue was the definition of restructuring. Did Argentina's "voluntary debt exchange" in November of 2001 meet the definition of a restructuring? The Republic of Argentina gave bondholders the option to turn in their bonds in exchange for secured loans backed by certain Argentine federal tax revenues. J.P. Morgan claimed this didn't meet the definition of restructuring, at least for the protection it sold to Eternity.J.P. Morgan's story was different when it wanted to collect on the protection it bought from Daehon, a South Korean Bank. J.P. Morgan claimed its slightly different contract language met the definition of restructuring under the credit default protection contract it had with the South Korean Bank.In other words, J.P. Morgan made sure its contract language would allow it to get paid when it bought protection and would make it harder for its counterparty to get paid when it sold protection.

Language Arbitrage: You’re Not a Sucker, You’re a Customer

Banks that play this game call it “language arbitrage.” Anyone that bought sovereign credit protection on Greece after accepting ISDA “standard” documentation without modifying the language now finds that they are on the wrong side of an “arbitrage.” An arbitrage is a riskless money pump. In this case, it means that money has been pumped out of credit default protection buyers with no risk to their counterparties, the financial institutions that ostensibly sold them credit default protection on Greece".

Bin kein Jurist und kein Derivateexperte, aber mit fällt der amerikanische Spruch "Heads I win, Tails you loose" ein. Etwa: Bei Kopf gewinne ich, bei Zahl verlierst Du.