Swap Documentation in Real Estate Finance Transactions: Coordinating ISDA Master Agreement and Mortgage Terms
Documenting Covenants, Security, Required Consents, Voting and Control, Reporting, and Regulatory Issues
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will discuss the various uses of swaps and other derivative products to hedge risk in real estate finance transactions, integrate derivatives into loan documentation, and document the swap transaction to ensure there is consistency with the loan.
Outline
- Introduction to hedging interest rate risk
- Swap documentation overview
- ISDA master agreement
- Schedule to the ISDA master agreement
- Confirmation
- Credit support annex
- Dodd-Frank regulatory terms
- Coordinating loan documents with the ISDA master agreement
- Securing hedging obligations
- Termination rights
- Complying with anti-tying laws
- Other common documentation pitfalls
- LIBOR phaseout: update
- Where are we in the transition from LIBOR
- Overview of USD LIBOR replacement (SOFR) and other alternative rates
- Model fallback terms
Benefits
The panel will review these and other key issues:
- Current market trends for using derivatives to hedge risk in real estate loan transactions
- Best practices for integrating derivatives into loan documentation
- The phaseout of LIBOR and the implementation of SOFR or other alternative rates
Faculty
Robert M. McLaughlin
Of Counsel
Fried Frank Harris Shriver & Jacobson
Mr. McLaughlin is a corporate partner resident in Fried Frank’s New York office, where he is a member of the... | Read More
Mr. McLaughlin is a corporate partner resident in Fried Frank’s New York office, where he is a member of the Asset Management and Financial Services Practices. He is head of the Firm’s Derivatives Practice and a leading practitioner in derivative transactions of all types, including futures, over-the-counter derivatives and cleared swaps, as well as related collateral, guarantee, custody and other credit support arrangements. Mr. McLaughlin also maintains a leading practice in repurchase, securities lending and prime brokerage and other types of trading agreements, as well as structured products, synthetic equity and fund-linked investments, credit extensions, loan trading and derivatives claim trading. His clients include hedge funds, private equity funds, investment management firms, investment and commercial banks, mutual funds, individual investors, corporations and government-sponsored entities. Mr. McLaughlin regularly advises market participants on legislative and regulatory developments concerning futures, derivatives, cleared swaps, bankruptcy and insolvency safe harbors, and market structure and facilities.
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Josh Xiong
Attorney
Fried, Frank, Harris, Shriver & Jacobson
Mr. Xiong counsels clients on regulatory and transactional matters in the derivatives, futures, and asset management... | Read More
Mr. Xiong counsels clients on regulatory and transactional matters in the derivatives, futures, and asset management spaces. Clients benefit from his extensive experience advising asset managers, investment advisors, registered funds, insurance companies, investment banks, broker-dealers, and other end users on the structuring, negotiation, and documentation of complex derivatives and other related products across a range of asset classes. Mr. Xiong also assists clients in their compliance efforts with the Dodd-Frank Act; global margin rules for uncleared derivatives (UMR); and applicable requirements of the CFTC, NFA, SEC, and other regulatory bodies. Prior to joining Fried Frank, Mr. Xiong was vice president and counsel at Guggenheim Partners, where he acted as the lead derivatives attorney.
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Michael Yu
Special Counsel
Fried Frank Harris Shriver & Jacobson
Mr. Yu advises banks, broker-dealers, and hedge funds on derivatives and financial products, related transaction... | Read More
Mr. Yu advises banks, broker-dealers, and hedge funds on derivatives and financial products, related transaction and trading regulatory issues, and negotiations of ISDA Master Agreements and Confirmations. His experience covers a spectrum of equity, hedge fund, currency, commodity, fixed income, and insurance-linked derivatives and structured products. Mr. Yu has extensive experience in the operation, maintenance, and optimization of structured-note programs, and leads the point-to-point design and setup of securities offering platforms and their related registration statements and documentation. He also spearheads the bespoke automation of structured note programs and works on the coding of offering documentation, closing documentation, and their processes from launch to settlement.
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