Demystifying Fas 133 - Part 2, Christian Johnson, Mary Grossman
Nov 2003
Demystifying Fas 133 - Part 2, Christian Johnson, Mary Grossman
Christian A. Johnson
This is the second in a two-part series examining the U.S. accounting change. Last week's article gave a general overview, this week the authors focus on hedge accounting.
Demystifying Fas 133--Part 1, Christian Johnson, Mary Grossman
Nov 2003
Demystifying Fas 133--Part 1, Christian Johnson, Mary Grossman
Christian A. Johnson
FAS 133 has generated substantial confusion and expense, especially for end-users acquiring derivatives as hedges. This article will give a general overview, whilst next week's will focus on hedge accounting.
Close-Out Netting & Set-Off Under U.S. Banking Insolvency Law, Christian Johnson
Aug 2003
Close-Out Netting & Set-Off Under U.S. Banking Insolvency Law, Christian Johnson
Christian A. Johnson
The huge role of U.S. banks in the derivatives industry means counterparties must understand the treatment of close-out netting and set-off for an insolvent bank by the Federal Deposit Insurance Corporation (FDIC). Close-out netting and set-off, both of which are typically provided under the ISDA Master Agreement, provide the most effective and efficient way to minimize credit risk with respect to the insolvency of a counterparty.
The 2002 Isda Master Agreement Made Simple, Christian Johnson
Jan 2003
The 2002 Isda Master Agreement Made Simple, Christian Johnson
Christian A. Johnson
The International Swaps and Derivatives Association published a new Master Agreement in December to replace the 1992 agreement. The new agreement represents the work of ISDA's Documentation Committee, with over 100 different members reviewing earlier drafts and providing comments. The trade association has already arranged for netting opinions on the new agreement in 36 different jurisdictions.
Netting, Financial Contracts, And Banks: The Economic Implications, William Bergman, Christian Johnson, Robert Bliss, George Kaufman
Dec 2002
Netting, Financial Contracts, And Banks: The Economic Implications, William Bergman, Christian Johnson, Robert Bliss, George Kaufman
Christian A. Johnson
Derivatives and certain other off-balance sheet contracts enjoy special legal protection on insolvent counterparties through a process referred to as close-out netting. This paper explores the legal status and economic implications of this protection. While this protection benefits major derivatives dealers and derivatives markets, it is less clear that other market participants or markets in general are better or worse off. While we are not able to conclude whether or not these protections are socially optimal, we outline the wide range of issues that a general consideration of the pros and cons of netting protection should take into cognizance, and …
Random Walks Down The Aisle And Class Participation, Christian Johnson, Linnie Wheeless
Dec 2002
Random Walks Down The Aisle And Class Participation, Christian Johnson, Linnie Wheeless
Christian A. Johnson
After attending a mock class discussion at the AALS Workshop for New Teachers, I developed a strong dislike for randomly calling on students.
