Swap Talks Over Greece Could Test the Market     Text Size  
Published: Wednesday, 29 Feb 2012 | 4:35 AM ET By: Peter
Eavis|The New York Times  The financial system could face a test
this week as industry officials debate a provision of the Greek
bailout.  PNC | Brand X Pictures | Getty Images Greek Parliament
Greece is preparing to overhaul its bonds next month, a
restructuring that could potentially prompt payouts on credit-
default swaps, the financial instruments that protect against
losses on debt. The International Swaps and Derivatives
Associationwill meet on Thursday to decide whether a certain
aspect of the deal will make those payments necessary.  If
parties have to make good on the credit-default swaps, the
situation could send shivers through the market. An important
and long-planned measure that aims to strengthen the derivatives
market is not yet in place, raising questions about how the
financial system will react if the credit-default swapshave to
pay out.  In the financial crisis of 2008, ban