Law Commons^™

Large money center and regional banks actively target and market interest rate swaps to middle market borrowers. Because these customers borrow at a variable rate, their bankers encourage them to hedge interest rate risk by concurrently entering into interest rate swaps.

The first popular publications about over-the-counter derivatives appear to have been written about the currency rate swap between the World Bank and IBM in 1981.

The International Swaps and Derivatives Association is working on a revised version of the 1992 Master Agreement. Parties should carefully consider the proposed changes because these agreements have become the market standard for documenting over-the-counter derivatives. The 2002 ISDA Master Agreement is the result of several years of work by various ISDA documentation committees and reflects some of the best thinking in the area. The following column is based upon the July 2002 draft circulated by ISDA. There will only be one or two more drafts to be circulated prior to its anticipated publication in December. Although there will probably …

ISDA master agreement negotiations are often never-ending, expensive and tedious. Negotiations can take months as parties battle over legal, business and credit terms. Although much has been done to standardize the documentation process, there are still numerous issues that parties must negotiate prior to executing the ISDA master agreement. In addition, parties often insist on making additional amendments to the ISDA master agreement that they believe are necessary to minimize legal and credit risks. Although negotiations can still deadlock over important terms, much can still be done to speed up negotiations. In particular, there are seven deadly sins that can …

A one stop shop for a detailed introduction to collateral management and documentation, giving the reader a thorough grounding in the subject.

This article considers the importance of Congress's and the courts' consideration regarding the role antitying provisions have in light of the battle that exists between commercial banks and investment banks in the underwriting arena. Part I of this article discusses the history of commercial banks' powers to both lend and underwrite securities, focusing particularly on the enactment of the Glass-Steagall restrictions and their repeal by the Gramm-Leach-Bliley Act of 1999. Part I also focuses on the recent rise of commercial banks (or their affiliates) as securities underwriters. Part II examines the growing convergence of commercial banks and investment banks both …