Template:M comp disc Credit Derivatives 4

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.

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	Note the Payment Requirement threshold in the 2014 ISDA Credit Derivatives Definitions. This is to ensure the derivative only catpures existential defaults and not merely irritating ones.
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	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.
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