When is a credit event not a credit event? That eternal question was approached from an unusual angle by New Jersey-based building firm Hovnanian at the end of last year when it agreed to intentionally default on some of its debt in return for fresh financing.
The move provoked uproar in the market with the slightly surreal sight of Goldman Sachs and a large US hedge fund entreating those in the CDS market to play fair and stick to the rules.
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