The International Swaps and Derivatives Association plans to publish a first-to-default swap template next week, its first such document for portfolios of credit derivatives. Kimberly Summe, general counsel in New York, said a lot of the discussion was centered around what to do if there is a succession event, such as two corporates merging, in the reference portfolio. The templates deal with both substituting the credit or credits for a similar name and unwinding the trade. “We had to address how this would work and what the economic implications would be,” explained Summe.
ISDA To Publish First-To-Default Credit Template
