The International Swaps and Derivatives Association is developing a standard set of definitions for credit events on credit-default swaps referenced to asset-backed securities. Louise Marshall, spokeswoman in New York, said the association is preparing a draft to standardize pay-as-you-go as well as cash and physically settled definitions. ISDA recently asked its members whether it should write a standard set of definitions for ABS referenced swaps (DW, 2/29). ISDA plans to circulate the draft shortly and will schedule a conference call in a couple of weeks to discuss the paper, she said.
"This process just started but there's quite a lot of interest globally," said an ISDA member in Japan, noting that the standards should likely be finalized in the next few months.
