At the end of last week a Greek credit event was declared by ISDA and most Greek CDS was triggered. In response the market's gave a collective yawn and pushed higher, erasing their losses from earlier in the week. At the moment it seems the money owed on the CDS is peanuts and will prove to be a non-event. But I think what is important is that the CDS was in fact triggered (something which many speculated the ECB would go to great lengths to prevent) setting a precedent that will likely be followed going forward.
Dealing with a Greek default is one thing, BUT what happens when Spain is on the chopping block?
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