For Immediate Release Tuesday, June 21, 2005
For More Information Contact:
ISDA Publishes
Template for Credit Default Swaps on
Asset-Backed
Securities with Pay as you go settlement
NEW YORK, Tuesday, June
21, 2005 – The International Swaps and Derivatives Association (ISDA) has
announced publication of a template for
documenting credit default swaps on asset-backed securities (CDS on ABS) with a
Pay As You Go (PAUG) approach.
The template is designed for use primarily with a Reference Obligation
that is a residential mortgage-backed security or commercial mortgage‑backed
security. It is anticipated that this
template will be used mainly, but not exclusively, in
“In creating derivatives documentation that is tailored to market practice in
specific underlying securities, ISDA is supporting the continued growth in
volume and diversity of derivative products to help mitigate credit and other
types of risk.” said
About
ISDA
ISDA
is the global trade association representing leading participants in the
privately negotiated derivatives industry. ISDA was chartered in 1985, and
today has more than 625 member institutions from 47 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.