Some More Fuel For GGP Fire

ISDA just announced it will publish a protocol for the Rouse Company's (read General Growth Partners) CDS auction protocol. Yet another consequence of the Monday default on over $2 billion in debt. At this point I don't see how a successful forbearance makes little sense as the CDS has been officially triggered.

New York, Friday, March 20, 2009 – The International Swaps and Derivatives Association, Inc. (ISDA) today announced that it will launch a CDS auction protocol to facilitate the settlement of credit derivatives trades referencing The Rouse Company LP.

Rouse is a subsidiary of General Growth Properties, Inc., the Chicago-based real estate company. Rouse was reported to have failed to pay more than $2 billion in debt on March 16.

ISDA will facilitate the process by publishing the Protocol and auction terms on its website www.isda.org, in due course. The Protocol will be open to ISDA members and non-members alike. The auction will be administered by Markit and Creditex.