Impact of Derivatives on Bankruptcy Cases

This paper discusses the derivative market and the legal risk of bankruptcy. The paper introduces derivative instruments, provides a review of evolving regulatory landscape and its implications on legal risk assessment on derivatives in bankruptcy cases as well as a methodology to test the robustness of a corporate capital structure in relation to market price oscillations in order to estimate corporate and (i.e. counter party) immunization effectiveness.
This paper is not intended to be legal advice.