Overview

A review of recent developments in the securities and structured finance market from Ashurst, covering topics such as covered bonds, ISDA/IIFM Master Agreement for Islamic hedging transactions, and CLOs.

Contents:

Covered bonds 101
Covered bonds are a hot topic - a lot of people are talking about them and some are getting done. The technology (or technologies) has been widely applied, not only in its traditional context, that is in funding in the public debt markets for financial institutions, but also in bespoke secured funding applications and even address issuer credit risk concerns in structured products.

ISDA/IIFM Master Agreement for Islamic hedging transactions
In March 2010, the International Swaps and Derivatives Association, Inc, and the International Islamic Finance Market, published the ISDA/IIFM Tahawwut (Hedging) Master Agreement.

Lehman Brothers International Europe: Setting limits to section 2(a) (iii)
Section 2(a) (iii) of the ISDA Master Agreement is potentially a powerful tool in the hands of a non-defaulting party, but its enforceability is being challenged.

CLOs: “Do I have to retain 5 per cent or not?”
On 23 July the FSA published its feedback statement on the consultation paper it issued earlier this year, regarding the implementation in the UK of the first two sets of changes to the European Capital Requirements Directive, popularly known as CRD 2 and CRD 3.


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