U.S. bankruptcy law grants special rights and immunities to creditors in derivatives transactions, including virtually unlimited enforcement rights. This Article examines whether exempting those transactions from bankruptcy’s automatic stay, including the stay of foreclosure actions against collateral, is necessary or appropriate in order to minimize systemic risk.
Steven L. Schwarcz, Derivatives and Collateral: Balancing Remedies and Systemic Risk, 2015 University of Illinois Law Review 699-720 (2015)
Library of Congress Subject Headings
Risk management, Debtor and creditor, Default (Finance), Bankruptcy, United States, Risk assessment, Derivative securities, Public finance