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Linklaters Insights: Credit supernova – ISDA publishes 2014 ISDA Credit Derivatives Definitions

29 March 2014

If 2009 saw the 'big bang and 'small bang' of the credit derivatives market, then 2014 sees the 'supernova' – the biggest overhaul of the Credit Derivatives Definitions in over a decade.

The 2014 Credit Derivatives Definitions include a new Credit Event for government bail-ins and revised deliverable obligation provisions to provide for 'asset package' delivery. They also incorporate numerous other changes to address issues which have come to light during recent credit events and succession events, and during discussions on the potential impact of a break-up of the Eurozone on the credit derivatives market. ISDA has also taken the opportunity to refine many of the current definitions, in certain places simplifying and consolidating the existing complex provisions, to produce a revised set of definitions which represent a considerable improvement to the 2003 ISDA Credit Derivatives Definitions.

In this briefing, our alliance partner Linklaters highlight some of the key new definitions and provisions contained in the 2014 ISDA Credit Derivatives Definitions and outline the background to these changes. They also consider the impact of the new definitions on issuers and arrangers of credit linked notes.

The full article is available on the Linklaters website.