CREDIT DERIVATIVES & 2014 DEFINITIONS

Course Details

Audience: This course is useful for legal teams (prior knowledge of the ISDA® is required), credit teams involved in setting terms for the credit derivatives confirmations, confirmations teams who are involved in working with the confirmations for the credit derivatives transactions and the trading teams who transact in credit derivatives transactions. Agenda: What is a credit derivative transaction (and what are Credit Default Swaps, Total Return Swaps and Credit Linked Notes)? Key areas of change in the 2014 Credit Derivative Definitions The main definitions will be covered including: Reference Entity, Succession Event, Obligations, Deliverable Obligations, Obligation Category and Obligation Characteristics New definitions included in the 2014 definitions including those relating to Sovereigns and to Financial Reference Entities Credit Events: what they are, and how are they triggered? The new Credit Event in the 2014 definitions of Governmental Intervention The SNS Reaal case study and how the 2014 definitions addressed the issues identified in this case The auction process and physical settlement process How the credit derivatives industry is being standardised (in particular, electronic systems and the Physical Settlements Matrix) The ISDA® suite of documents relating to credit derivatives: Master Confirmation Agreements, the Standard Terms and the Physical Settlements Matrix Outcomes: Delegates will gain a sound understanding of the key credit derivatives definitions, how they work in the context of a confirmation and how the auction and settlement process works when closing out credit derivatives transactions.