This Practice Note focuses on the impact of Brexit on facilities agreements. It discusses (or links to detailed information on): • the position on the Loan Market...
For information on why the parties to a loan transaction might use hedging, see Practice Note: Use of derivatives to hedge against risk in a lending context. Parties The...
It is not only banks and financial institutions that enter into derivative transactions. The types of entities seeking to enter into derivative transactions can vary...
The International Swaps and Derivatives Association, Inc. (ISDA) is an association for participants in the derivatives industry. It has developed standard documentation...
BREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For guidance, see...
Facility agreement Hedging clause Some facility agreements include a clause setting out what is required in terms of hedging in a particular transaction (see, for...
Background Loan transactions are often negotiated over a lengthy period of time. Hedging is typically put in place to support a loan, eg an interest rate swap to convert...
BREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For guidance, see...
The main types of derivatives are: • swaps • forwards • futures, and • options This Practice Note explains the key features of each of the above types of derivative....
Borrowers often hedge against the following risks in the context of a lending transaction: • interest rate risk by entering into an interest rate swap • exchange rate...
The most common reasons for entering into derivatives are for the purposes of: • speculation—where a party wishes to gain exposure to a particular variable, eg,...