Greece’s use of collective action clauses (CAC) forcing investors to take losses under its debt restructuring has triggered payouts on $3bn of default insurance, the International Swaps & Derivatives Association said.

CREDIT-DEFAULT swaps on Allied Irish Bank will be settled at auctions after the International Swaps & Derivatives Association (ISDA) ruled there has been a failure-to-pay credit event.

MILLIONS of dollars in insurance payments are set to be paid out to investors by derivatives traders in the wake of Allied Irish Banks burning junior bondholders.