![]() Standardised documentation will make it easier for institutional clients to invest.”Īctivity in the instruments came to an abrupt halt following the 2008 collapse of Lehman Brothers as investors faced multi-year legal battles to get money out of SPVs that had entered into swaps with the bankrupt dealer. “Given the demand for yield in the current low rate environment, these products will be in demand. “This project aims to create a more efficient and transparent market for repackaging transactions by providing standardised contracts,” said Pierre Lescourret, global head of engineering for equities and equity derivatives at SG. Harmonised documentation is expected to reduce costs and improve transparency in repackaged transactions, but the cross-market initiative primarily aims to address the treatment of derivatives underlying repack transactions issued out of special purpose vehicles in the event of a swap counterparty default. LONDON, Nov 2 (IFR) - Four global banks have teamed up to offer standard documentation for repackaged transactions that enable insurers and pension funds to customise the risk and return profile of their debt investments.ĭeutsche Bank, Morgan Stanley, Nomura and Societe Generale have launched Standard Repackaging Documentation in collaboration with law firm Simmons & Simmons.
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