ISDA® Master Agreement and Credit Support Documentation for Risk Officers

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One day training course

Course description

Counterparty credit risk has been one on of the main focuses following the collapse of Lehman Brothers. Knowing your counterparty and applying the appropriate credit terms in OTC derivatives documentation is key.

This course provides a practical comprehensive overview of all credit issues in the ISDA Master Agreement and ISDA collateral documentation and their implications.

Learning objectives

 Participants will take away with them the following:

  • A basic understanding of the 2002 ISDA® Master Agreement and its Schedule.
  • Knowledge of the common amendments negotiated in the Schedule.
  • Awareness of the common credit issues related to this documentation.
  • An understanding of the key differences between the 1992 and 2002 versions of the ISDA® Master Agreement.
  • Knowledge of the importance of taking collateral and the main market documentation used.

Who should attend

  • Credit officers
  • Risk managers
  • Corporate Lenders
  • Senior management

Programme points

Delegates are required to bring their own copies of the 2002 ISDA® Master Agreement and 1995 ISDA® Credit Support Annex under English Law.

Course outline

Morning: The 2002 ISDA® Master Agreement: How it works and its credit implications

1.    Introduction.

2.    ISDA documentation structure.

  • Definitions
  • Confirmations
  • Master Agreements

3.    Need to know highlights of the 2002 ISDA Master Agreement.

4.    Matters for credit approval.

  • Specified Entity
  • Specified Transaction
  • Specified Indebtedness
  • Cross Default/cross acceleration
  • Threshold Amount
  • Requests for the unilateral disapplication of Credit Event Upon Merger
  • Additional Termination Events
  • Transfers
  • Section 10(a) and political risk

5.     How to use the ISDA Master Agreement to enhance credit protection.

6.     What happens if a deal is done and the Master Agreement is not signed?

7.     Main differences between the 1992 ISDA Master Agreement and the 2002 ISDA Master Agreement.

8.     Question and answer session.

Afternoon: Collateral and the ISDA® Credit Support Annex under English Law

1.     Credit input in collateral arrangements

  • Eligible Credit Support
  • The need for initial margin
  • Thresholds.
  • Minimum Transfer Amounts.
  • Haircuts
  • Use of Ratings
  • Bilateral or unilateral CSA

2.      The ISDA Credit Support Annex (English law)

  • Need to know analysis of provisions.
  • Commonly made amendments with examples.

3.      Question and answer session

Training is charged at an agreed 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.

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    Testimonials

    Great service / Good Knowledge transfer

    "The main idea when planning the seminar was to get legal advice on a special niche of the derivatives documentation business through legal training tailored exactly to the needs of our bank. This allowed us to cover all the topics needed in a one day seminar.

    Everyone who joined the course very much enjoyed it and found it very helpful. The knowledge transfer was further ensured by the brilliant transcript which now helps us in our day to day work. The seminar was worth every penny and added real value. It is left for me to say, thank you for the great service, the good knowledge transfer and your willingness to step in our shoes to identify our problems and needs when preparing the seminar."

    Another European bank