Use of derivatives in a lending context — documentation issues

This guidance note explains the key documentation and drafting issues to consider when hedging risks in a lending context. It addresses issues such as:

• • hedging strategy letters or protocols;
• • hedging agreements; and
• • tailoring the swap to the risk profile.

This guidance note also considers how the loan documentation and derivative documents should be drafted to ensure they are consistent.

See Use of derivatives in a lending context — documentation issues.