Isda publishes LevX index documention and revised LCDS single-name docs

Isda published a documentation template for CDS referencing the LevX index of European leveraged loans. The LevX Standard Terms Supplement for Use with Credit Derivative Transactions on Leveraged Loans is designed to document credit default swap transactions where the reference obligation and the deliverable obligation are a European syndicated secured loan listed in the index. The form is intended primarily for use in the European market, Isda notes.

The index version is based on the documentation template for single-name credit default swaps referencing European syndicated secured loans that Isda published in July 2007. The index version of the contract is structured so that it will continue after the refinancing of the reference obligation, referencing instead the new loan or loans that refinanced the original reference obligation, which is similar to the single-name contract.

Isda also today published a revised version of the single-name Standard Terms Supplement for Use with Credit Derivative Transactions on Leveraged Loans. The template was updated to conform with the index version.