OOF! PIMCO Disagrees With PIMCO On The Greek CDS Decision

This morning, ISDA decided that the inclusion of a collective action clause and the subordination of private sector bonds to bonds held by the European Central Bank and European national central banks had not triggered a credit event.

PIMCO's Bill Gross expressed dismay at this decision, telling Reuters that the decision set a dangerous precedent.

Thanks to Joseph Cotterill at the FT, however, we now know that what PIMCO's CIO says might not be what PIMCO means (h/t @felixsalmon).

He pointed out that PIMCO is actually on the ISDA committee that ruled on the issue—and in fact voted against the decision to trigger a credit event!

Check out the memorandum:

So who should we believe? PIMCO or PIMCO? Needless to say, we're confused (and laughing).

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