Credit derivatives—credit events
Credit derivatives—credit events

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • Credit derivatives—credit events
  • What are credit events?
  • Types of credit events
  • Bankruptcy
  • Obligation Acceleration
  • Obligation Default
  • Failure to Pay
  • Repudiation / Moratorium
  • Restructuring
  • Governmental Intervention
  • More...

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Key issues for derivatives transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.

What are credit events?

A credit derivative aims to give the purchaser protection against the occurrence of a number of different credit events occurring on the underlying reference entity to that transaction. These credit events are set out in the relevant confirmation to the transaction. As the credit derivatives market is mostly standardised, confirmations will generally apply the same credit events to the same reference entities by incorporating the International Swaps

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