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France's Casino CDS auction values bonds at 1 cent

BY Reuters | CORPORATE | 09/25/23 10:32 AM EDT

LONDON, Sept 25 (Reuters) - Investors who bought default insurance on France's Casino Guichard Perrachon SA bonds are getting a nearly full payout after a committee that reviews disputes in the credit default swaps (CDS) market said a credit event had occurred.

An auction to settle Casino's CDS contracts was held on Monday and established a price of 1 cent in the euro for the unsecured bonds against which the CDS provide insurance, according to a statement from Creditfixings, part of S&P Global Market Intelligence.

This means that CDS holders are entitled to a payout of 99% of the bonds' face value, calculated as the difference between 100 and the bonds' price set during the auction.

The first part of Monday's auction showed net open interest to sell stood at 197.3 million euros ($208.7 million), said Creditex and Markit, who jointly run the auction process, in a statement posted online. ($1 = 0.9452 euros) (Reporting by Chiara Elisei, editing by Karin Strohecker)

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