Glossary
CDS glossary
CDS terms and the deliverability rules Mastermind applies, defined as we use them. CDS means credit default swap.
CDS credit-event analysis
Identify the reference entity, incorporated definitions and credit-event elections. Compare dated evidence with those terms: a default headline alone does not establish a contractual credit event.
Separate what happened, whether the contract recognizes a credit event, and which obligations can be delivered. Record notices, amendments and unresolved facts. Read any Determinations Committee resolution alongside the supporting record; the applicable definitions and transaction terms govern.
Deliverable-obligation analysis
Identify the exact instrument and its amendments. Test each applicable characteristic against cited clauses, keeping the issuer, reference entity and reference obligation distinct.
The rules below cover characteristics such as currency, maturity, seniority and transferability. Missing terms or conflicting amendments remain unresolved; another bond’s result is not proof for this instrument.
For auctions, distinguish potential and final obligations lists and check later corrections. The Novo Banco potential-obligations record illustrates the document type, not a universal eligibility list.
9 of 9 terms
I
- Issuer matches Reference EntityDeterministic rule
The obligation must be an obligation of the Reference Entity: issued by it (alone, or as a co-issuer jointly and severally liable for the whole amount), or guaranteed by it under a Qualifying Guarantee. When the Reference Entity guarantees another issuer's obligation, this test is assisted review: CDSBench reports the guarantee findings (see Qualifying Guarantee) and leaves the decision to the reviewer. A successor needs separate analysis.
version 1.2 · provisional
M
- Maximum MaturityDeterministic rule
The obligation's remaining maturity, measured from the Delivery Date, must not exceed the Maximum Maturity (30 years by default). CDSBench measures it from the credit event date, which is conservative: any later Delivery Date only shortens the remaining maturity.
version 1.0 · provisional
N
- Not BearerDeterministic rule
The obligation must not be a bearer instrument, unless interests in it are cleared via Euroclear, Clearstream or another internationally recognised clearing system.
version 1.0 · provisional
- Not ContingentDeterministic rule
Principal must not be reducible by reason of contingencies other than payment. This is a CDSBench check: under the 2014 ISDA Definitions contingency is handled through the Outstanding Principal Balance rather than as a separate characteristic.
version 1.0 · provisional
- Not SubordinatedDeterministic rule
The obligation must not be subordinated to the Reference Obligation (or the Prior Reference Obligation, if applicable). CDSBench checks that the obligation is described as senior. When the Reference Entity owes the obligation through a guarantee, CDSBench tests the underlying obligation the same way and also looks for a clause subordinating the guarantee: one that names the Reference Entity and its Guarantee fails the test; any other subordination wording found is left for review.
version 1.2 · provisional
Q
- Qualifying GuaranteeDeterministic rule
Applies when the obligation is issued by another entity and the Reference Entity guarantees it. The Reference Entity's guarantee must be a Qualifying Guarantee: in summary, a written, irrevocable undertaking to pay what is due on the obligation, as a guarantee of payment rather than of collection; not capable of being released, reduced or assigned because of an event other than payment, a permitted transfer to a successor, operation of law or a fixed cap; and with a benefit that passes with the obligation. This is assisted review: CDSBench never passes or fails it. It reports what it read, each with the clause it came from — the guarantor, whether the guarantee is stated to be unconditional, irrevocable and of payment, whether it runs to the holders, and every release, termination, suspension or assignment clause it found with a reading (standard: payment in full; market practice: legal defeasance or satisfaction and discharge; likely disqualifying, such as the sale of the guarantor's shares or covenant defeasance, under which the notes stay outstanding; or not read) — and leaves the decision to the reviewer, because guarantees can be released or limited in ways only a full reading shows.
version 2.0 · provisional
R
- Required fields presentDeterministic rule
Core fields (issuer, currency, maturity, seniority) must be established before a deliverability conclusion.
version 1.0 · provisional
S
- Specified CurrencyDeterministic rule
The obligation must be payable in a Specified Currency (by default the Standard Specified Currencies: the lawful currencies of Canada, Japan, Switzerland, the United Kingdom and the United States, and the euro).
version 1.0 · provisional
T
- TransferableDeterministic rule
The obligation (other than a loan) must be transferable to institutional investors without any contractual, statutory or regulatory restriction; Rule 144A and Regulation S restrictions are disregarded, and consent requirements on loans are separate characteristics.
version 1.0 · provisional
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