ISDA®
INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, INC.

NEWS RELEASE

For Immediate Release Tuesday, May 2,  2006

For More Information, Please Contact:

Louise Marshall, ISDA New York, 212-901-6000, lmarshall@isda.org

 

 

ISDA Publishes Recovery Lock Credit Derivative Template

 

NEW YORK, Tuesday, May 2, 2006 The International Swaps and Derivatives Association (ISDA) has announced publication of a Template for use with Recovery Lock Credit Derivative Transactions.

 

Recovery lock credit derivatives give the credit protection buyer the security of a fixed rate of recovery in case of a credit event.

 

“Standard documentation for recovery lock credit derivative transactions will be helpful for the smooth and efficient functioning of the product sector,” said Robert Pickel, Chief Executive Officer and Executive Director of ISDA. “The existence of an ISDA standard is often also a catalyst for growth in the associated product.”

 

The Recovery Lock Credit Derivative Template is the most recent publication in ISDA’s extensive suite of credit derivative documentation. Other documents currently being finalized include the Loan Only Credit Default Swap Template for use with CDS referencing loan underliers in North America. A subsequent project will address documentation for CDS referencing leveraged loans in Europe. ISDA is planning to hold a symposium in New York this summer addressing both Recovery Lock and Loan Only CDS; date to be announced.

 

About ISDA

ISDA, which represents participants in the privately negotiated derivatives industry, is the largest global financial trade association by number of member firms. ISDA was chartered in 1985, and today has approximately 700 member institutions from 50 countries on six continents. These members include most of the world's major institutions that deal in privately negotiated derivatives, as well as many of the businesses, governmental entities and other end users that rely on over-the-counter derivatives to manage efficiently the financial market risks inherent in their core economic activities. Information about ISDA and its activities is available on the Association's web site: www.isda.org.

 



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