The Role of Calculation Agents in Capital Markets

The Role of Calculation Agents in Capital Markets

A calculation agent is the party that performs calculations that are set out in a transactional documents, typically related to a corporate financing or corporate derivative transactions. In this video, Mark discusses when these agents may be required, the type of work they do and they way they complete the work required.
Overview

It is increasingly common for transactions with complex calculations to involve an independent third-party calculation agent which is responsible for performing those independently and correctly. These can include capital market instruments like bonds with make-whole calls, bank capital, and convertible and exchangeable bonds, but also bilateral contracts like derivatives, and even employee compensation plans. This video looks at the role of the independent calculation agent, and how it is performed.

Key learning objectives:

  • What is a Calculation Agent?

  • What types of transactions benefit from the use of an independent calculation agent?

  • What are the key roles an independent calculation agent plays

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Summary
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Expert
Mark Dalton

Mark Dalton

Mark Dalton was an investment banker for 15 years, starting out in Toronto working for BMO Capital Markets, before moving to London to do a Masters in Finance at London Business School. He then spent 11 years at UBS, where he was involved in structuring, documenting, and executing tens of billions of convertible bond and strategic equity derivatives transactions. Currently, Mark is the Managing Director and Founder of ConvEx, a leading independent calculation agent in EMEA.

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