Understanding ISDA Agreements
ISDA agreements govern most derivative transactions. This course is essentially practical rather than legal, in that it focuses on the various risks that can arise from derivatives and how the agreement seeks to mitigate them. It is based on the 2002 master agreement* and takes a mainly European perspective.
An understanding of debt products such as loans and bonds, plus a working knowledge of derivatives is ideally required for this course. This would be covered by the Debt Capital Markets and Derivatives Markets courses.
Who should attend?
Delegates needing to know more about derivatives documentation, including bankers, credit and legal professionals, treasurers and their staff, accountants and auditors, financial controllers.
*Please note that as they are copyright the course material cannot include ISDA documentation. The focus is on explaining the structure, meaning and negotiation areas of the documents.
Interest rate swap risks,
counterparty credit risk
How swaps are marked to market
Swap risk management
why some counterparties resist collateralisation
Credit Valuation Adjustment (CVA)
The goal of ISDA documentation
Overview of what the documentation comprises – the key points it covers and how the parts relate to each other
Collateral Support Annex (CSA)
Suitability and non-reliance
Enforceability and counterparty jurisdiction
Representations – authority and the Hammersmith & Fulham example
Events of Default – derivatives cross-default, Cross Default, Cross-Default v Cross-Acceleration, Bankruptcy
Termination Events and Automatic Early Termination, Additional Termination Events
Hierarchy of events
Close-out calculations – for Events of Default and Termination Events, incorporating the credit spread
Cherry-picking and how the Master seeks to avoid it
Close-out netting opinions
As every course we run is tailored to meet the specific needs of each client, we can only provide an estimate after fully understanding your specific requirements. Please complete the form below of call +44 (0) 208 894 4977 to discuss how Taylor Associates can help you.