The so-called ôpaired-warrantyö would replace the foreign-currency bond with a peso-denominated bond, in the case of default. The instrument differs from credit default swaps CDS which offer insurance to bondholders in the case of default, because it matches specific peso securities to holders of paired warrants, continues the report.
The Philippines, like most domestic markets in Asia with the exception of Korea, has been relatively isolated from the global subprime-related turmoil in the financial markets.
Despite a disappointing year with respect...
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