For
Immediate Release Thursday, June 8, 2006
For More Information, Please Contact:
ISDA
Publishes Loan Only CDS Document
The
Syndicated Secured Loan Credit Default Swap Template is designed to
document credit default swap transactions where the reference obligation is a
syndicated secured loan and the deliverable obligations are also syndicated
secured loans. The form is primarily intended for use in the
The template is
for use in conjunction with a Physical Settlement Terms rider, which is
published by the Loan Syndication and Trading Association (LSTA) and which can
be accessed at www.lsta.org.
“The practice of referencing syndicated
loans as underliers in credit default swap transactions is an increasingly
popular application of the credit derivative product,” said Robert Pickel, Chief Executive Officer and
Executive Director, ISDA. “ISDA is delighted to have been able to work with the
LSTA to help standardize that practice in a manner consistent with derivative
and loan market conventions.”
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 over 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.