MONTREAL, May 8 /CNW Telbec/ - Global Diversified Investment Grade Income
Trust ("Global DIGIT") (TSX: DG.UN) announces that further to a failure to
pay, a credit event has occurred in respect of Syncora Guarantee Inc. (f.k.a.
XL Capital Assurance Inc.). This reference obligation is included in several
of the portfolios to which Global DIGIT is exposed and represents 1% of each
portfolio in which it is found.
The impact of the Syncora credit event on Global DIGIT will be that the
subordination levels in the affected portfolios will be lowered. However the
exact percentage of this reduction will be known when the recovery rate is
determined within the next several weeks. Regardless of the recovery rate,
Global DIGIT will not suffer a loss pursuant to this credit event.
About Global DIGIT
Global DIGIT provides an economic interest in a mezzanine tranche of
credit default swaps in respect of portfolios of synthetic corporate
exposures, mortgage-backed securities, asset-backed securities and structured
For further information:
For further information: François Rivard, (514) 879-6405,