Broadcast Date: Thursday, June 04, 2020
from 12:00 pm to 1:30 pm (ET)

Overview:

Earlier this year, the International Swaps and Derivatives Association (ISDA) proposed amendments to the 2014 ISDA Credit Derivatives Definition for “narrowly tailored credit events” (NCTE). NCTE is described as an arrangement with a certain corporation that induces a credit event leading to a credit default swap settlement while denigrating the impact on the corporation. However, its proposed amendments relate only to ‘failure to pay’ credit events. If the amendment is to be adopted, it is expected that market participants will use the amended resolution for new credit default swaps (CDS) contracts, and a market protocol will provide market participants the opportunity to apply the amended definition to existing credit derivative transactions.

Beyond the growth and amendments of this overall policy, market participants should keep in mind that the proposed resolution can present potential ambiguities.

In this LIVE Webcast, financial experts Ignacio Franceschelli (NERA Economic Consulting) and Bjorn Bjerke (Shearman & Sterling LLP) will provide the audience with an in-depth analysis of the recent developments on ISDA’s credit derivatives definitions. As experts, they will also present the important issues surrounding this significant topic including the implications and ambiguities to face for the year ahead.

Key topics include:

  • ISDA’s Proposed Amendments – Updates
  • ISDA’s Proposed Guidance – What You Should Know
  • Commentaries
  • Implications and Ambiguities
  • Outlook

Credit:

Course Level:

Intermediate

 

Advance Preparation:

Print and review course materials

 

Method of Presentation:

On-demand Webcast (CLE)

 

Prerequisite:

General knowledge of finance laws

 

Course Code:

148601

 

NY Category of CLE Credit:

Areas of Professional Practice

 

Total Credits:

1.5 CLE

Speaker Panel:

Dr. Ignacio Franceschelli, Senior Consultant
NERA Economic Consulting

Dr. Franceschelli is a Senior Consultant in NERA’s Securities and Finance Practice. He specializes in the analysis of complex securities including mortgage-backed securities and collateralized debt obligations.

Since joining NERA he has provided support to expert testimony related to the credit crisis and the resultant litigation. He has managed projects involving RMBS litigation and his work comprises the analysis of securitized mortgage loans including sampling design and mortgage default and loss severity econometric models to estimate future collateral losses. He has also analyzed the factors that influence loan pricing in projects concerning mortgage discrimination claims.

Bjorn Bjerke, Partner
Shearman & Sterling LLP

Bjorn Bjerke is a partner in the Finance practice and resident in the New York office. He focuses his practice on representing lenders, borrowers, managers and investors in a broad range of complex financing arrangements across a wide spectrum of asset classes including securitizations and other structured financings, various shared collateral and second lien structures, repo facilities, commodity, equity, credit and fund linked derivatives, subscription lines and a variety of funding arrangements tailored to existing purchase commitments such as energy management agreements and airline frequent flyer miles programs. In addition, he has extensive experience representing investors, creditors and managers in complex restructurings, work-outs and acquisitions of distressed and nonperforming assets. He is involved in all aspects of deal structuring, negotiation and documentation.

Agenda:

SEGMENT 1:

Bjorn Bjerke, Partner

Shearman & Sterling LLP

  • Some of the background leading up to ISDA’s publication of the 2019 Narrowly Tailored Credit Event Supplement
  • A run through of Codere, iHeart and Hovnanian as examples of the types of arrangements the supplement seeks to curtail
  • The supplement’s fix to the problem of manufactured “cheapest to deliver” obligations and engineered failure to pay credit events
  • Addressing the subjectivity introduced by the changes through guidance notes
  • Where do we go from here:
    • other strategies that potentially could impact CDS markets that have not been addressed as part of the NTCE Supplement
    • cautionary statements from the regulators
    • The difficulties of distinguishing bona fide arrangements from impermissible manipulation

SEGMENT 2:

Dr. Ignacio Franceschelli, Senior Consultant

NERA Economic Consulting

  • The 2019 Narrowly Tailored Credit Event Supplement by ISDA provides some guidance on whether the credit deterioration requirement is or is not satisfied. Economic analysis of credit default swaps (CDS) can be used to help assess allegations of opportunistic behavior related to CDS and the creditworthiness of a company.
  • CDS terminology: Why do investors use CDS? Are there different types of CDS contracts? What is the relation between the CDS spreads (prices) and the lengths of the contracts?
  • How CDS prices can identify significant credit risks against a company and changes in these risks.
  • Brief history of the RadioShack litigation.

Date & Time:

Thursday, June 04, 2020

12:00 pm to 1:30 pm (ET)

Who Should Attend:

  • In-house lawyers
  • Transactional Lawyers
  • Traders and Bankers
  • Market Participants
  • Compliance Professionals
ImageNameCategory
Preventing Ransomware Attacks: A Practical Guide to Enhancing IT Security and Resiliency,
Speaker Preferred Package (Online Payment)
Asbestos Litigation: Demystifying Trends, Developments, and Defense Strategies,
New York Online CLE Bundle
Pennsylvania Online CLE Bundle
California Online CLE Bundle
Supercharging Privilege Review With AI, Analytics, and Automation,
The Hows and Whys of Child Abuse Reporting: A Comprehensive Ethical Guide for Lawyers,
Maximizing Your Innovation ROI: R&D Tax Credits in 2024 and Beyond,
Navigating the Complex World of Corporate Bankruptcy and Reorganization,
Demystifying Economic Sanctions: Strategies for Success in a Global Economy,
Practical Trademark Perspectives from U.S. and Canadian Counsel,
Effectively Manage KYC Compliance: Keep Up with the Times by Getting Back to Basics,
OFAC Regulations and the Economic Sanctions Compliance Programs: Best Practices,
'Zombie' LIBOR for USD Contracts: Navigating the Critical Issues, ,
Calculating Lost Profits in Construction Claims: A Practical Guide,
False Claims Act and COVID-19 Implications: Key Considerations and Best Practices, ,

SPEAKERS

Dr. Ignacio FranceschelliSenior Consultant
NERA Economic Consulting
Bjorn BjerkePartner
Shearman & Sterling LLP

SUBSCRIPTION PACKAGES

ALL-ACCESS PASS

View Details

CLE LAW MONTHLY

View Details

CPE FINANCE MONTHLY

View Details

Join Over 160,000 Professionals Empowering Their Careers

Learn anywhere from over 3000+ live and recorded CLE, CPE & Technology Webcasts.