The credit derivatives market is taking another step
on the long road to maturity with the International Swaps
& Derivatives Association 2003 credit derivatives
definitions. The changes may seem insignificant for all the
hours of research that went into them. But for buyers and
sellers of credit protection it will be a huge leap
forward.
The definitions replace the 1999 version, which has been given
the piecemeal treatment during the last four years as various
credit events have poked holes in it - the default of Conseco,
National Power restructuring and the crisis in Argentina, for
example. ISDA expects dealers to begin using the new format in
March.
Restructuring remains the biggest bone of contention among the
dealer community. "This is probably the part of the agreement that
took the longest to negotiate, is one of the most difficult and
raises the most questions," says David Geen, senior counsel at
Goldman Sachs. Already, there are...
