Template:M comp disc Credit Derivatives 4: Difference between revisions

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|+ Comparison between 2002 Events of Default and 2014 Credit Events
|+ Comparison between 2002 Events of Default and 2014 Credit Events
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! {{isdama}} !! {{cdd}} !! Commentary
! {{isdama}} !! {{cdd}} !! Commentary
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| {{isdaprov|5(a)(i)}} {{isdaprov|Failure to Pay or Deliver}} || {{cddprov|4.5}} {{cddprov|Failure to Pay}} ||
| {{isdaprov|5(a)(i)}} {{isdaprov|Failure to Pay or Deliver}} || {{cddprov|4.5}} {{cddprov|Failure to Pay}} ||
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| {{isdaprov|5(a)(ii)}} {{isdaprov|Breach of Agreement}}  ||  The “Repudiation” bit of {{cddprov|4.6}} {{cddprov|Repudiation/Moratorium}} ||  
| {{isdaprov|5(a)(ii)}} {{isdaprov|Breach of Agreement}}  ||  The “Repudiation” bit of {{cddprov|4.6}} {{cddprov|Repudiation/Moratorium}} ||  
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| {{isdaprov|5(a)(iii)}} {{isdaprov|Credit Support Default}} || No equivalent || The point is to vouchsafe the creditworthiness of the specific {{cddprov|Reference Entity}}, not any old affiliate who might have guaranteed its obligations. If you want that, specify the affiliate guarantor as the {{cddprov|Reference Entity}}, and ensure that {{cddprov|Qualifying Guarantee}}s count.
| {{isdaprov|5(a)(iii)}} {{isdaprov|Credit Support Default}} || No equivalent || The point is to vouchsafe the creditworthiness of the specific {{cddprov|Reference Entity}}, not any old affiliate who might have guaranteed its obligations. If you want that, specify the affiliate guarantor as the {{cddprov|Reference Entity}}, and ensure that {{cddprov|Qualifying Guarantee}}s count.
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| {{isdaprov|5(a)(iv)}} {{isdaprov|Misrepresentation}} || NA ||
| {{isdaprov|5(a)(iv)}} {{isdaprov|Misrepresentation}} || NA ||
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| {{isdaprov|5(a)(v)}} {{isdaprov|Default Under Specified Transaction}} || {{cddprov|4.3}} {{cddprov|Obligation Acceleration}} ||
| {{isdaprov|5(a)(v)}} {{isdaprov|Default Under Specified Transaction}} || {{cddprov|4.3}} {{cddprov|Obligation Acceleration}} ||
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| {{isdaprov|5(a)(vi)}} {{isdaprov|Cross Default}} || {{cddprov|4.4}} {{cddprov|Obligation Default}} (but see also {{cddprov|4.5}} {{cddprov|Failure to Pay}}) ||
| {{isdaprov|5(a)(vi)}} {{isdaprov|Cross Default}} || {{cddprov|4.4}} {{cddprov|Obligation Default}} (but see also {{cddprov|4.5}} {{cddprov|Failure to Pay}}) ||
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| {{isdaprov|5(a)(vii)}} {{isdaprov|Bankruptcy}} || {{cddprov|4.2}} {{cddprov|Bankruptcy}} ''and'' {{cddprov|4.8}} {{cddprov|Governmental Intervention}} || The {{cdd}} splits out the governmental intervention section of the ISDA’s {{isdaprov|Bankruptcy}} section (Section {{isdaprov|5(a)(vii)}}(4)(ii)) into a separate section. Otherwise, broadly the same.
| {{isdaprov|5(a)(vii)}} {{isdaprov|Bankruptcy}} || {{cddprov|4.2}} {{cddprov|Bankruptcy}} ''and'' {{cddprov|4.8}} {{cddprov|Governmental Intervention}} || The {{cdd}} splits out the governmental intervention section of the ISDA’s {{isdaprov|Bankruptcy}} section (Section {{isdaprov|5(a)(vii)}}(4)(ii)) into a separate section. Otherwise, broadly the same.
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| {{isdaprov|5(a)(viii)}} {{isdaprov|Merger without Assumption}} || No equivalent ||
| {{isdaprov|5(a)(viii)}} {{isdaprov|Merger without Assumption}} || No equivalent ||
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| No equivalent || {{cddprov|4.7}} {{cddprov|Restructuring}}
| No equivalent || {{cddprov|4.7}} {{cddprov|Restructuring}}
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Revision as of 09:04, 25 April 2023

The compare and contrast here is to the ISDA Master Agreement.

Comparison between 2002 Events of Default and 2014 Credit Events
ISDA Master Agreement 2014 ISDA Credit Derivatives Definitions Commentary
5(a)(i) Failure to Pay or Deliver 4.5 Failure to Pay
5(a)(ii) Breach of Agreement The “Repudiation” bit of 4.6 Repudiation/Moratorium
5(a)(iii) Credit Support Default No equivalent The point is to vouchsafe the creditworthiness of the specific Reference Entity, not any old affiliate who might have guaranteed its obligations. If you want that, specify the affiliate guarantor as the Reference Entity, and ensure that Qualifying Guarantees count.
5(a)(iv) Misrepresentation NA
5(a)(v) Default Under Specified Transaction 4.3 Obligation Acceleration
5(a)(vi) Cross Default 4.4 Obligation Default (but see also 4.5 Failure to Pay)
5(a)(vii) Bankruptcy 4.2 Bankruptcy and 4.8 Governmental Intervention The 2014 ISDA Credit Derivatives Definitions splits out the governmental intervention section of the ISDA’s Bankruptcy section (Section 5(a)(vii)(4)(ii)) into a separate section. Otherwise, broadly the same.
5(a)(viii) Merger without Assumption No equivalent
No equivalent 4.7 Restructuring
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