ISDA publishes list of obligations with monoline insurer as reference entity

By Jennifer Chiou

New York, Feb. 26 - International Swaps and Derivatives Association, Inc. (ISDA) announced the first published list of obligations for which a monoline insurer is the reference entity.

The list was published on the ISDA web site and provides information about the range of obligations that market participants believe may be delivered in case of a credit event.

ISDA previously said that its members have noted that, given the financial environment and the potential size of this information-gathering exercise, it is prudent for the association to ensure that if a credit event occurs in relation to a widely traded reference entity, ISDA and market participants are prepared to implement a settlement auction or other mechanism that will serve the market's needs.

Dealers that are CDX market makers may contribute information directly to ISDA. Other parties may contribute through one of those dealers.

ISDA represents participants in the privately negotiated derivatives industry. It announced plans for the list on Feb. 21.

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