Sovereign credit default swap (CDS) protection buyers might be having sleepless nights over the consequences of a Greek restructuring – but bankers and analysts say their fears are unlikely to be realised.

Despite a €110 billion bail-out by the European Union and International Monetary Fund in May last year, a growing consensus is emerging that this will not be enough and that some form of Greek restructuring is inevitable. According to the New York-based Depository Trust & Clearing Corporation