Swaps in Commercial Finance Transactions: Coordinating Loan Terms With the ISDA Master Agreement and Schedule

This CLE course will guide finance counsel on how interest rate swaps and other derivative products are used to hedge risk in loan transactions, how derivatives terms are appropriately integrated into loan documentation, and how to document the swap transaction to ensure consistency with the loan.

The vast majority of over-the-counter derivatives transactions are governed by standard documents published by the International Swaps and Derivatives Association (ISDA). The documentation includes the ISDA Master Agreement, a Schedule thereto, in some cases a Credit Support Annex, and a trade confirmation, which together establish the relationship between a borrower and swap provider and the legal and economic terms of the swap (or other hedging transaction).

Counsel plays a critical role in integrating the appropriate swap-related provisions into loan terms, including cross-default, cross-collateralization, prepayment, assignment, implementation of floating rate fallback terms, and recourse obligations.

Listen as our authoritative panel of finance practitioners guides you through the use of swaps to hedge risk in loan transactions and best practices for coordinating the swap and loan documents.