Quebecor CDS Auction Sets Final Price Of US$0.4125 /Dlr
Dow Jones - February 19, 2008
The settlement price for credit default swaps of Canadian publishing company Quebecor World Inc. was set at 41.25 U.S. cents on the dollar, as a result of an auction held Tuesday. The auction was held because Quebecor filed for protection from bankruptcy in January, triggering a so-called "credit event," which means investors can cash in CDS protection. The CDS auction allows trades to be settled in cash and not just by handing over physical bonds, as CDS contracts require.
Thirteen qualified dealers participated in the auction.
