This now finally make perfect sense, lets call a sheep a sheep..
The handling of this case by ISDA just shows how much is the CDS contracts really worth in reality..
Math/Finance should have been rather straight forward... just black or white..
"UPDATE 2 (2:48 p.m.): ISDA has now declared that Greece’s restructuring does represent a default, meaning credit default swaps will trigger. Read the statement here.
UPDATE (2:43 p.m.): An ISDA spokesman told Forbes no decision has been reached regarding on whether Greece’s restructuring qualifies as a credit event, which would in turn trigger CDS protection."