Close Outs under the ISDA®: a Lehman Brothers Case Study
Audience: This course is useful for people in legal, credit and risk; collateral and compliance; and possibly the front and middle office staff.
An overview of what caused the financial crisis: the sub-prime mortgage market and the securitisation food chain
An in-depth look at what one should do if there is an event of default under an ISDA®
The impact of defaults on equity derivatives transactions and credit default swaps
Key court rulings on Lehman’s cases will be discussed and how the court interpreted the ISDA®, and what lessons were learnt: How the Conditions precedent clause was interpreted; the enforceability of cross affiliate set-off and mutuality requirements for set-off
Outcomes: This course will provide delegates with an in-depth knowledge of what steps to take when closing out transactions under an ISDA®. The Lehman collapse will be analysed in terms of what triggered it and how derivatives played a part in the collapse. Various court cases will be discussed to give the delegates a good understanding of how courts interpret various key clauses in the ISDA® agreement. This is important in understanding the various precedents, which courts set as a result of litigating on the ISDA®.
Duration: 4 hours
Cost: R5 700 per person (excluding VAT)