Technical Update Extra (TT Dec05 p50-52)

Credit support, amendments and novations
In parts 1 to 3 of this series, Gary Walker and Guy Usher examined each of the core constituents of ISDA documentation: the Master Agreement, the Schedule, the Confirmation and related Definitions. In this fourth and final part, they turn their attention to some of the technical issues relating to the provision of credit support, the effecting of amendments to existing relationship and/or transaction terms, and the novation of transactions to a third party. Concluding with a summary of the series, they suggest a roadmap for treasurers to follow when next faced with an ISDA negotiation.