Dealing with stressed counterparties: Section 2(a)(iii) of the ISDA Master Agreement and the “Out of the Money” position

In the light of increased volatility across many markets and disruptions to economic activity, parties to transactions that are subject to ISDA Master Agreements1 will need to think about what strategies they would adopt if an Event of Default occurs with respect to their counterparties.

Choices

Filed under:
USA, Derivatives, Insolvency & Restructuring, Litigation, Reed Smith LLP
Authors:
Brett Hillis , Ray-Shio Ho , Kyri Evagora , Hagen Rooke , Kohe Hasan , Richard G. Swinburn
Location:
USA
Firm:
Reed Smith LLP