Why is ISDA publishing this list?
The purpose of this list is to gather and disseminate information as to the range of obligations that market participants believe may be delivered upon the occurrence of a credit event under standard credit default swaps for which a monoline insurer is a reference entity.

Monoline insurers have guaranteed a wide variety of obligations, ranging from municipal bonds to CDO and ABS bonds.  These different classes of obligations trade at widely varying prices. This combination of a large number of potential deliverable obligations and a potentially wide price range may raise additional considerations concerning the successful completion of a possible cash settlement auction.  Some ISDA members have therefore suggested that it would be helpful to prepare and publicize this list in order to provide market participants with a clearer understanding of the range of potential deliverable obligations.

Publication of this list does not indicate that ISDA believes that a credit event with respect to any particular entity or class of entities is imminent or likely.  Rather, ISDA members have noted that, in the current financial environment, and given the potential size of this information-gathering exercise, it is prudent for ISDA to ensure that if a credit event occurs in respect of a widely traded reference entity, ISDA and market participants are prepared to implement a settlement auction (or other mechanism) that will serve the market’s needs.

Important statement regarding use of information
Your use of the information contained in the list is subject to the warnings and disclaimers set out on the [next page], which you must acknowledge in order to proceed. In particular, you should be aware that the information contained in this list is provided “as is” and ISDA has not verified and will not verify the information provided to it. Inclusion of an obligation in the list does not imply that either the contributor or ISDA has verified that the obligation actually is deliverable under the terms of a standard credit default swap contract.

What information is included in the list?
The list contains limited details (Cusip/ISIN; deal name; issuer; outstanding notional amount; Maturity and Deal Type) of obligations that contributors reasonably believe are likely to be delivered into standard credit default swap contracts for which a monoline insurer is a reference entity. A separate list of obligations is provided for each monoline insurer.

Who can contribute?
Any market participant can contribute information. However, in order to keep submissions in a standard format and to facilitate the process of contacting contributors when necessary, only dealers that are CDX market makers may contribute information directly to ISDA. Other parties are encouraged to contribute through one of those dealers.

Form for contributing information
A form for contributing information is available here. ISDA requests that information subject to confidentiality restrictions not be forwarded to it. ISDA requests that any contributor forwarding information have a reasonable belief that any obligation it lists is likely to be delivered into a standard credit default swap contract for which a monoline insurer is a reference entity.

How long will the list remain open?
It is intended that the list will remain open for contributions until further notice, though ISDA retains the right to close the list or discontinue its publication at any time.

Is this a definitive list of deliverable obligations with respect to each monoline?
No.  The purpose of this list is to facilitate the collection of certain limited information from market participants in order to create a publicly available indicative list of obligations that market participants believe would be likely to be delivered into standard form credit default swaps for which a monoline insurer is a reference entity.  It is not complete and obligations appearing on the list may not actually be deliverable.

What if persons disagree with the inclusion of a bond in the list?
Because this list is not a definitive list of deliverable obligations with respect to each monoline, there is no process contemplated to entertain or to resolve disagreements or challenges to the contents of the list.  ISDA retains the right to modify the list from time to time to add or delete obligations or to correct any information on the list, but ISDA has no obligations to do so at any time.

What is the relationship between this list and the list of deliverable obligations that might be included in a settlement protocol?
There is no direct relationship between this list of obligations and any list that would be included in a settlement protocol in respect of a monoline insurer.  If a credit event occurs in respect of a monoline entity, ISDA will consider, on the basis of discussions with market participants, how any list of deliverable obligations should be assembled at that stage.

Can I download and use the information contained in the list?
The list is provided in the form of an Excel® spreadsheet, which anyone may download and use, at their own risk and subject to the terms of the disclaimers referred to above.