Clifford Chance

Narrowly tailored credit event amendments implemented at last

21 February 2020

The long awaited amendments to the 2014 ISDA Credit Derivatives Definitions to address narrowly tailored credit events came into effect on 27 January 2020. The amendments apply to credit derivative transactions with a corporate reference entity (but not to transactions with a sovereign reference entity) and have been implemented through the 2019 Narrowly Tailored Credit Event Supplement to the 2014 Definitions.

In this briefing, we consider the scope of the amendments as well as the background to the amendments following the recent market focus on narrowly tailored (or manufactured) credit events. 

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