ISDA launches documentation template for loan credit default swap transactions

By Sara Rosenberg

New York, June 8 - The International Swaps and Derivatives Association (ISDA) has launched a documentation template for credit default swap transactions where the reference obligation is a syndicated secured loan and the deliverable obligations are also syndicated secured loans, according to a news release.

The Syndicated Secured Loan Credit Default Swap Template is primarily intended for use in the U.S. market.

"The practice of referencing syndicated loans as underliers in credit default swap transactions is an increasingly popular application of the credit derivative product," said Robert Pickel, chief executive officer and executive director, in the release.

"ISDA is delighted to have been able to work with the LSTA to help standardize that practice in a manner consistent with derivative and loan market conventions."

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