Mastering ISDA Collateral Documents: A Practical Guide for Negotiators

A timely updating of the only accessible single volume guide to the ISDA Credit Support Annexes, sanctioned under English and US law. The Annexes collateralise or secure over the counter derivatives risk exposure.  This is the companion book to Mastering the ISDA Master Agreements, now in its third edition. First published in 2002, the book is a guide to negotiation of the two main ISDA Credit Support Annexes which are used to support the ISDA Master Agreements.  The ISDA Credit Support Annexes are the main support documents which relate to collateralised or secure over the counter derivatives risk exposure. This book covers collateral management from an operational perspective and focuses on the two main ISDA Credit Support Documents. It provides a clear concise narrative on their provisions and amendments

Table of Contents:
About the authors Disclaimer  Acknowledgements Authors’ foreword   1 Introduction Definition of terms Why collateral is taken Types of collateral Product risk exposure covered Evolution of collateral documentation   2 Collateral management from a European perspective Some facts and figures What collateral management units do The importance of policies and procedures Setting up the collateral relationship Exposure monitoring and collateral valuation and calling Transfers Reuse of collateral Collateral substitutions Distributions Disputes Portfolio reconciliations Defaults Branches External collateral management services   3 Legal issues relating to collateral from the European and US perspectives European perspective by Paul Harding Introduction General issues Recharacterisation Conflict of laws rules The PRIMA rule Other legal issues ISDA collateral legal opinions The European Directive on Financial Collateral Arrangements Draft Hague Convention on indirectly held securities Amending Directive to the Collateral Directive and Settlement Finality Directive Geneva Securities Convention Collateralisation and central clearing counterparties US perspective by Christian Johnson                                                                         Introduction                                                                                                                  Enforcement of New York choice of law                                                                       Security interest creation and perfection                                                                         Exercising  rights under the Security Agreement Other issues Other enforcement concerns Dodd-Frank changes 4 Credit issues relating to collateral Establishment of collateral management risk guidelines Initial margin Haircuts Thresholds Minimum Transfer Amounts Eli