About usLegal and documentation aspects of credit derivatives.
One day course
1. General Overview
- History and evolution of the credit derivatives market
- Market Size
- Uses of credit derivatives.
- Types of credit derivatives
- Risks associated with credit derivatives
2. Legal issues
- The insurance question.
- Gaming.
- Netting.
- Transferability.
- Confidentiality (publicly available information).
- Selected causes celebres
3. Documentation – the 2003 ISDA® Credit Derivatives Definitions and July 2009 Supplement.
- A Glossary of Terms.
- Credit Events.
- Reference Entity.
- Successor Provisions
- Obligation Categories and Characteristics
- Deliverable Obligation Categories and Characteristics
- Existence of a Credit Event (Publicly Available Information).
- Calculation Agent.
- Settlement Procedures after Credit Event
- Auction Settlement.
- Physical Settlement
- Cash Settlement - Substitution of obligations.
- Novation Provisions and Novation Protocols
4. Guarantees and the May 2003 Supplement
5. Significant developments since 2003
- 2009 Credit Derivatives Determinations Committees, Auction Settlement and Restructuring Supplement (the "July 2009 Supplement")
- The global move to standard coupons
- Regulators’ initiative to move CDS on to clearing systems or exchanges.
- Rule on when credit protection starts.
- 60 Business Day Cap on Settlement
- Standardisation of Scheduled Termination Dates
- 2005 Matrix Supplement and the Credit Derivatives Physical Settlement Matrix
- The “orphaning” problem
- ISDA® Work in Progress
6. Practical Exercise.
Training is charged at an agreed daily rate plus Value Added Tax.
ISDA® is a registered trademark of the International Swaps and Derivatives Association, Inc. The programme is neither sponsored by nor affiliated with the International Swaps and Derivatives Association, Inc.
