Write-down Resolution?

Jun 22, 2012

Regarding a new bail-in mechanism proposed under an EC directive for bank recovery and resolution, Assia Damianova says, "Doubts remain, under the proposed bail-in mechanism of the EC bank recovery and resolution directive about, the ability to trigger CDS where the write-down mechanism is laid out in the relevant bond documents; and about compliance with some of the deliverable obligation characteristics... The Credit Derivatives Definitions have to evolve to achieve predictability for market participants and a well-functioning market, where CDS fully hedge the credit risk in accordance with the parties' commercial intent."

CadwaladerNews

CadwaladerSpotlight

To assist individuals in working from home during the coronavirus social-distancing period, Cadwalader is providing clients and friends free access to our legal research platform, the Cadwalader Cabinet.