Negative rates pose contract questions

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By Costas Mourselas
15 Aug 2018

A note by law firm Mayer Brown has advised counterparties trading with International Swaps and Derivatives Association (ISDA) documentation to consider special amendments if they want their contracts to take into account the effects of negative interest rates, referencing a recent court decision.

Credit support annexes are the documents in an ISDA master agreement that govern the provision of collateral for derivatives trades. This documentation has been the subject of legal uncertainty when the rate it references for collateral arrangements goes negative. 

As highlighted in a new Mayer Brown note, a ...

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