The International Swaps and Derivatives Association (ISDA) updated its credit derivative definitions earlier this month, and while market participants agree that the changes are welcome, the documentation is still largely regarded as a work in progress.

The new definitions do little to resolve the ongoing debate among European market participants over the restructuring of credit events. "Some of the changes are very practitioner based, but [the ISDA] has, for the first time, updated definitions to include the "modified modified" restructuring scheme that would apply to European credits," said one analyst.

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