The International Swaps and Derivatives Association is planning to launch a template tomorrow for trading convertible-bond asset swaps. The convertible asset swap template will standardize documentation for bond options and swaps transactions--currently negotiated bilaterally between dealers and clients--and is expected to enable greater liquidity and the development of an inter-dealer market.
Convertible asset swaps trades are especially popular in Asia on a growing market there for underlying convertible bonds and conversion of equity-linked bonds. The template will be global.
