ISDA Finds An Event Of Default At Eastman Kodak, Whose Bonds Are Trading 27% Higher Than Greece

ISDA, in which the I stands for Irrelevant or other even less flattering adjectives, has just released the following press release:

NEW YORK, January 19, 2012 – The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its Americas Credit Derivatives Determinations Committee resolved that a Bankruptcy Credit Event occurred in respect of Eastman Kodak Company.


The Committee determined that an auction will be held in respect of outstanding CDS transactions. ISDA will publish further information regarding the auction on its website,, in due course.

Which is great: apparently the default of Kodak will not lead to the end of the financial system as we know it. But we have a simple question: we would love if someone at ISDA would get back to us with the answer to the following rhetorical question: which of these two charts belongs to a benchmark Eastman Kodak 2 year bond, and which to  a 2 year Greek bonds, which apparently, ISDA will never find in default. And also, why is the one found to be in a credit event trading 6 cents higher than the non-credit event one.


P.S. here is the answer for what would happen if one bought GGBs and Sold EK bonds: a loss of nearly 7 absolute cents in cash.