LONDON, (Reuters) – Monday’s question to the EMEA Credit Derivatives Determinations Committee was whether Russia’s hard currency bonds were unable to be paid. This could lead to a closer payout of billions in default insurance.

Russia paid the April 4th payment in roubles for two bonds of sovereign debt rather than the dollar it was required under the instrument’s terms.

Credit Default Swaps are a method of protecting the buyer from exposure to certain risks. In this instance, Russia’s default on its sovereign debt.

Market participants, typically investors, ask the CDDC for information about a possible failure to pay.

A payout is triggered if the committee approves of a credit incident.

JPMorgan (NYSE 🙂 stated in a Monday note that the current net notional Russia CDS totalling $3.43B were to be settled. The $2.48 billion was from a single person and the remaining from CDS Indexes.