The Crystal Clear Crystal Ball

From Creditflux.com: CDS may be triggered by autos czar, says Bank of America.

A US autos czar may trigger credit default swap contracts, says Bank of America. Analysts posit that the result may depend on the exact wording of a potential bailout package and the process is likely to be determined through Isda. Based on the wording of the recent draft bill, there are two potential triggers for autos CDS: bankruptcy and modified restructuring credit events.

From Creditflux.com: Autos bailout bill unlikely to trigger CDS contracts, says Bank of America.

Bank of America analysts suggested yesterday that the new draft of the autos bailout bill is unlikely to trigger credit default swap contracts, and of orphaning LCDS contracts.

It's good to have complete clarity in these situations.