Design of Master Agreements for Otc Derivatives (Paperback)

Introduction.- Derivatives Usage and Documentation.- The Benefits of Derivatives for Non-Financial Firms; ISDA Master Agreements; Legal Risk, Enforceability, and Insolvency Law; Summary; Incomplete Contracts and Security Design.- An Overview of the Literature on Incomplete Contracts; The Basic Framework; A Benchmark Case: Bilateral Bargaining Without Derivatives; Numerical Examples; Summary; The Implications of Provisions in Master Agreements.- The Basic Bargaining Framework With Multiple Claims; The Impact of Close-out Netting Provisions; Limited Two-Way Payment Provisions; Collateralization of Derivatives Transactions; Numerical Examples; Summary; Two-Sided Credit Risk.- A Bilateral Bargaining Framework With Two-Sided Credit Risk; Close-Out Netting; Limited Two-Way Payment Provisions; Numerical Examples; Summary; Conclusion and Outlook