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| [[4.1 - Credit Derivatives Provision|The]] compare and contrast here is to the {{isdama}}. Many reflect the fact that the ISDA, being a private transaction creating inherently volatile exposures, has hair-trigger termination rights that you would not expect in a long term senior debt financing arrangement. | | [[4.1 - Credit Derivatives Provision|The]] compare and contrast here is to the {{isdama}}. Many reflect the fact that the ISDA, being a private transaction creating inherently volatile exposures, has hair-trigger termination rights that you would not expect in a long term senior debt financing arrangement. |
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| |+ Comparison between 2002 {{isdaprov|Events of Default}} and 2014 {{cddprov|Credit Events}}
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| ! {{isdama}} !! {{cdd}} !! Commentary
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| | {{isdaprov|5(a)(i)}} {{isdaprov|Failure to Pay or Deliver}} || {{cddprov|4.5}} {{cddprov|Failure to Pay}} || Note the {{cddprov|Payment Requirement}} threshold in the {{cdd}}. This is to ensure the derivative only catpures existential defaults and not merely irritating ones.
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| | {{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.
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| | {{isdaprov|5(a)(iv)}} {{isdaprov|Misrepresentation}} || NA || Misrepresentation is a bilasteral sort of a thing, and does not necessarily indicate complete collapse, and where it does, will be accompanied by more hard-edged events (like catastrophic Failures to Pay and Bankruptcy), so need not be separately mentioned.
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| | {{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}}) ||
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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.
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| | {{isdaprov|5(a)(viii)}} {{isdaprov|Merger without Assumption}} || No equivalent ||
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| | No equivalent || {{cddprov|4.7}} {{cddprov|Restructuring}}
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The compare and contrast here is to the ISDA Master Agreement. Many reflect the fact that the ISDA, being a private transaction creating inherently volatile exposures, has hair-trigger termination rights that you would not expect in a long term senior debt financing arrangement.