Credit derivatives definitions

ISDA Credit Derivatives Definitions. International Swaps and Derivatives Association (ISDA) (1999). 

The rapid rise in use of credit derivatives has contributed to the liquidity and depth of this market worldwide. It has also fostered the adoption of standardized terms and definitions. Terminology and definitions in credit derivative contracts have been developed and harmonized in recent years and assisted in the takeup of these products by a variety of financial and nonfinancial institutions. The need for appropriate credit derivatives definitions have been considered by the International Swaps and Derivatives Association (ISDA). ISDA s definitions and terms are used in the confirmations and termsheets for most credit derivative transactions. 

The 1999 ISDA Credit Derivatives Definitions listed six credit events that could be incorporated into credit default swaps. These are... 

Credit events for corporate entities nsually conform to ISDA credit derivative definitions and snpplements. The events currently commonly used in most CDS confirmations are ... 

In Europe and Asia, the standard credit default swap contract used the restructuring definition (sometimes referred to as old restructuring ), whereas in the North American markets the standard credit default swap contracts refer to modified restructuring. The 1999 ISDA Credit Derivative Definitions would have been effective until early 2003. The 2003 ISDA Credit Derivative Definitions, which were in place in early 2003 (implementation in May 2003), have implemented some key amendments to the 1999 definitions, some of which were previously included in supplements issued by ISDA. 

The 2003 ISDA Credit Derivative Definitions expand and revise the 1999 ISDA Credit Definitions and Supplements. The 2003 ISDA Credit Derivative definitions took effect in early 2003. 

The Supplement Relating to Successor and Credit Events to the 1999 ISDA Credit Derivatives Definitions was introduced on 28 November 2001 to clarify the treatment of reference entities which may be affected by a succession event (for example mergers, demergers, or corporate reorganisations). The successor is determined by considering... 

At the time of writing, the International Swaps and Dealers Association is about to publish a new version of the ISDA Credit Derivatives Definitions. 

The legal department of most firms that buy or sell credit derivative instruments carefully monitor the terms of the transaction and in particular will focus on any nonstandard terms. In most cases the market will trade on standard ISDA documentation (terms and definitions). Sources of dispute, which are rare, may arise on the actual contract terms the nature of credit events, the obligation selected by the protection buyer for delivery. 

We recall that in the simulation (dots in Fig. 6) C and B were, respectively, 25 and 38 Hz. The applied field was assumed to be perfectly homogeneous and C originated entirely from the finite width of the pulses. The fact that the experimental value of B is smaller than that derived from the simulations is not surprising because the simulations were carried out for the crystal orientation where the dipolar coupling of the methylene protons has its absolute maximum, whereas the experiment was done for a different, alas unknown, orientation. For this orientation the dipolar coupling was definitely even smaller than the maximum accessible with our arbitrarily fixed sample crystal, which itself is smaller than the absolute maximum, as can be inferred from a comparison of the t = 1.5-/1S spectrum in Fig. 23 with the MREV spectrum in Fig. 22a. In any event the result B p < B - is pleasing and gives credit to our spectrometer (the indices exp and sim mean experimental and simulated). From B < B it also follows that the finite-pulsewidth contribution to is smaller... 

Index methods are based on structured check lists, which translate definitions in numeric values. Final indexes - which represent risk levels - derive from numerical combinations of the values, according to empirical algorithms. The first safety index method was the DOW Fire and Explosion Index (AIChE 2005), which was proposed in the seventies. Hazard sources and safety barriers are accounted respectively as Penalties and Credits. 

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