“Market participants have seen the benefit of auction settlement in the North American Loan CDS market and in senior unsecured CDS and were keen to incorporate it into this product. ISDA is pleased to be able to respond to this and to have facilitated the continued evolution of this market,” said David Geen, General Counsel, ISDA.
The ISDA iTraxx® LevX® Standard Terms Supplement for Use with Credit Derivative Transactions on Leveraged Loans is designed to document credit default swap transactions where the reference obligation and the deliverable obligation are a European syndicated secured loan listed in the index. The form is primarily intended for use in the European market.
This version is based closely on the documentation template for credit default swaps referencing the iTraxx® LevX® index of European leveraged loans that ISDA published in March 2008.
ISDA also announced today that it has published a revised version of the (single-name) Standard Terms Supplement for Use with Credit Derivative Transactions on Leveraged Loans. This template has been updated to include auction settlement on the same terms as the index version, providing consistency for those entering into single-name loan CDS trades on reference obligations that are listed in the index.
The European LCDS index templates are available at www.isda.org.
