Template:M summ Credit Derivatives 3.31

Imagine, just for a moment, being part of ISDA’s crack drafting squad™ credit default detachment when it found itself so deep down a rabbit hole — so deep in the schtuck — that it was dealing with contingencies and variables are arcane and arbitrary as these ones. It is not so much a rabbit hole as a mineshaft. This would have given the poor fellow with the broken leg stuck down the crevasse in Touching The Void hope. And the only comfort — and Prophet on a Bike, it’s a cold one — is that things only get worse in the paragraph that follows, Para 3.32. And then you get to go and play in the definitions specially devised for these rearranged Restructuring variations

So what is going on here?

Well, these are codified reactions to earlier iterations of the Restructuring definition in the 2003 Credit Derivatives Definitions that, on first contact with reality during the global financial crisis, were found not to work.