• CFTC Issues New Guidelines Concerning Eligibility of Swap Guarantors
  • March 25, 2013 | Author: Adam Sonenshine
  • Law Firm: Burr & Forman LLP - Atlanta Office
  • In secured lending transactions, lenders frequently allow, and even require, borrowers to enter into swap agreements and other financial derivatives to hedge against different business risks, including fluctuations in interest rates, currency rates, and commodity prices. Performance by the borrower under such swap agreements generally constitutes a guaranteed obligation of the borrower under the loan documentation.