The International Swaps and Derivatives Association, Inc. (ISDA) today announced that LCDS dealers voted to hold an auction for European loan-only CDS transactions referencing the credit named in the RED LCDS database as "McCarthy & Stone", the European retirement home builder.
European loan only CDS transactions refer to Reference Obligations rather than Reference Entities, as is the case in regular CDS and North American LCDS.
The Markit iTraxx LevX Market Makers have determined that a Bankruptcy Credit Event has occurred in respect of the entity listed as the borrower in respect of the Reference Credit Agreement, Mother Bidco Limited, following the appointment of administrators in respect thereof and have voted to hold an auction for ELCDS transactions referencing certain Reference Obligations.
ISDA will facilitate the process by publishing the auction terms on its website www.isda.org/credit, in due course. The auction will be administered by Markit and Creditex.