Short selling, or 'going short', is a technique whereby traders sell shares or debt instruments ('securities') which they do not own at the time of entering into the...
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...
The terms ‘bonds’ and ‘notes’ are used interchangeably (and there is no legal difference between the terms), though notes tend to be issued either continuously or...
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...
Role The role of credit rating agents (CRAs) is to provide an objective and analytical opinion on the risk of payment defaults by looking at various factors that help...
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...
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...
Management of issuer risk In structured finance transactions (including securitisations), a special purpose vehicle (an SPV, also referred to as the Issuer) will be...
The International Swaps and Derivatives Association, Inc. (ISDA) is an association for participants in the derivatives industry. It has developed standard documentation...
The nature, main types and main uses of financial derivatives are summarised in Practice Notes: The nature of financial derivatives and Types of derivatives. Derivative...
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...
English and New York law are the two most commonly selected governing laws for the International Swaps and Derivatives Association (ISDA) documentation, particularly...
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...
The current restructuring cycle has featured bondholders playing a significant role in many restructuring cases. In previous cycles, high yield bonds featured in some...
Companies, governments and municipalities issue bonds to finance their operations and fund projects. The bond market offers a very efficient way to borrow capital....
Ratings outlooks and watch-lists The three main credit rating agents (CRAs), Moody's Investors, Standard & Poor's (S&P) and Fitch Ratings, periodically review ratings....
Who and what are bondholders Bondholders (sometimes also known as noteholders) have generally invested in a company’s most junior—and hence risky—debt. In a distressed...
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...
The vast majority of derivative transactions are documented by standard documentation developed and published by the International Swaps and Derivatives Association, Inc....
The vast majority of derivative transactions are documented by standard documentation developed and published by the International Swaps and Derivatives Association, Inc....
Brexit 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 further...
Introduction Prior to September 2008, numerous small and medium-sized enterprises (SMEs) entered into interest rate hedging products (IRHPs) to support borrowing with...
This Practice Note sets out certain key cases and associated analysis relevant to derivatives practitioners. The cases are divided by topic area and include: •...
What are credit derivatives and what are credit events? What is a credit derivative? A credit derivative is a bilateral transaction which takes its underlying value from...
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...
ISDA documents The 1992 and 2002 ISDA Master Agreements (the Master Agreements) are standard form documents produced by the International Swaps and Derivatives...
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...
The Financial Conduct Authority (FCA) has the power, in accordance with the Listing Rules (LRs), to suspend and/or discontinue the listing of any securities if satisfied...
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...
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...