This video explores contingent transactions in depth, with a worked example to show pricing and the practical implications of how the transaction works. We examine other situations where this type of transaction may be apt. It also discusses the execution process and key documentation required to implement a transaction. The video concludes with case studies to highlight the robustness of the product.
Key learning objectives:
Grasp how deal contingent transactions are priced and quoted
Understand how a DC deals with the fact that the completion date of an M&A is uncertain
In which other events and for which market risks can the DC product be used?
Understand how a DC trade is executed and the key documentation points