The International Swaps and Derivatives Association (ISDA) is an organization for market participants who deal in Swaps and Caps. ISDA created a standardized contract (ISDA Agreement) that defines the terms and parameters for entering into a derivative instrument. The lengthy contract is comprised of two main parts:
The Webster’s dictionary of derivatives, the main body of the ISDA, which usually remains static, covers payment obligations, representations, covenants, events of default, early terminations, transfers, governing law and other contractual terms.
Schedule to the Master Agreement
“The schedule” as its often referred to, makes the ISDA document unique to the trading parties and mainly serves to highlight unique credit provisions specific to the financing.
Despite what you may have been told by your lender, the ISDA agreement is not an off-the-shelf document and is highly negotiable. We assist with the negotiations, either directly with the lender or in conjunction with your counsel, on the ISDA, the Schedule to the Master Agreement, and if need be, the Credit Support Annex (CSA).