Derivatives and structured products
The financial crisis will bring changes in the regulation of derivatives markets, and products such as credit default swaps may ultimately be exchange-traded, but there is plenty of work for law firms, not least from transactions affected by the Lehman Brothers collapse. Though complex structured finance activity has waned, there is a good flow of simpler derivatives trades.
Clients have ‘absolute confidence’ in Allen & Overy LLP’s ability to provide ‘timely, accurate responses to complex questions’. In a stellar team, clients see Richard Tredgett ‘in the thick of it’ as adviser to ISDA, and David Benton, Edward Murray and ‘master of restructuring’ Simon Haddock are ‘leaders in their field’. Murray’s regulatory expertise saw him advise HM Treasury on the Banking Act. Anthony Drake-Brockman, Ian Annetts and Jeffrey Golden are other partners in a team providing outstanding, multi-jurisdictional service across the broadest product range.
Habib Motani heads Clifford Chance’s global team from London, where standout strengths in a broad practice include OTC and strategic equity trades. A huge amount of closeout work for banks, corporates and funds following the demise of Lehman Brothers sits alongside regulatory advice to banks such as UBS, Islamic derivatives work, and growing expertise in mortality, longevity and catastrophe trades. The firm is European regulatory adviser to ISDA.
Linklaters LLP’s role as sole representative of the administrators of Lehman Brothers has been keeping Michael Voisin’s team extremely busy. ‘Bright, extremely approachable lawyers with a commercial mindset’ include Alan Davies, Pauline Ashall, Mark Brown, Mark Fletcher and Vinay Samani, and clients also single out Simon Firth as ‘the pre-eminent expert in derivatives law and practice’, and Deepak Sitlani as a great negotiator. ‘You feel they are part of the team and not an external law firm.’
Clients score Ashurst LLP ‘ten out of ten’ for derivatives work, noting its ‘commitment’ and describing it as ‘more client-focused and approachable than Magic Circle firms’. The team includes the technically skilled Chris Georgiou, the ‘practical, approachable and clear’ Chris Whiteley, and James Coiley, who is ‘one of the best’. The partners all have in-house experience with investment banks.
David Roylance’s specialist derivatives practice makes Simmons & Simmons ‘a go-to firm for investment banks and buy-side clients in a time of crisis’, and many hedge fund clients have been seeking its help on Lehman Brothers exposures and regulatory developments. Sean Bulmer is busy with equity derivatives; the commercially minded Alan Yip, who joined from Bear Stearns, brings ‘great industry knowledge and acumen’; and Antony Bryceson is praised for his depth of knowledge. The firm has some experienced derivatives litigators, and Jonathan Melrose stands out for his regulatory skills.
Baker & McKenzie LLP ‘always meets our expectation of quality, speed and fees charged’, say clients, who admire Bruce Somer’s professionalism and in-depth knowledge. Jonathan Walsh and Christopher Hogan stand out in a team busy with interest rate, currency, equity and credit derivatives, plus advisory work, enforcement and disputes management for end users, pensions funds and investment banks. Emerging markets work has included deals involving Russia, Saudi Arabia and Ukraine, and National Australia Bank is anew client.
Clients praise experienced partners such as Simeon Rudin, James Grand and Jonathan Shann at Freshfields Bruckhaus Deringer LLP, ‘a first port of call’ for the likes of JPMorgan and Deutsche Bank. The firm advised Goldman Sachs on restructuring the Whistlejacket SIV, including auctioning part of its US$5bn asset portfolio.
‘The most responsive and client-orientated firm’, Mayer Brown International LLP’s team is ‘smart, honest, more realistic and pragmatic than others’. Ed Parker embodies its ‘fair, objective and rigorous approach’, and is well liked throughout the industry, and recently authored a key work on managing credit events. Clients praise Elana Hahn’s ‘consistent high quality of work in complex transactions’, and Stephen Day, who ‘ensures a smooth and secure outcome’.
Laurence Garside and Dean Naumowicz head an ‘exceptionally responsive, helpful, professional’ team at Norton Rose LLP that has been advising banks, corporates and hedge funds on structured deals affected by the collapse of Lehman Brothers and Icelandic banks. Restructuring, emerging markets and Islamic derivatives are all areas of strength. Clients pick out Farmida Bi and the regulatory knowledge of Jonathan Herbst.
Shearman & Sterling LLP has ‘a very strong team with a deep knowledge base, common sense and a great combination of personalities’, and ‘an ability to adapt quickly as deals change’. Patrick Clancy ‘always provides sensible, commercial advice’, and Ian Harvey-Samuel has ‘real strength in structuring complex transactions’.
Derivatives are a key focal point for Sidley Austin LLP’s restructured international finance group. Elizabeth Uwaifo, Matthew Dening, Paul Matthews and Howard Waterman are noted for their high levels of service, and have been busy in areas such as unravelling complex structured finance transactions; enforcement of rights; restructuring derivatives contracts; and emerging areas such as structured longevity products.
‘Service is first class and very prompt’ at Slaughter and May, which advises banks and end users including Deutsche Bank, Aegis and Diageo. Clients praise Sanjev Warna-kula-suriya’s commercial approach and technical skills, noting ‘he can turn his hand to any aspect of the transaction to produce the right result’.
White & Case LLP is ‘a pleasure to deal with and more flexible than other firms’. Clients appreciate the specialist knowledge and accessibility of partners such as Gavin McLean and David Barwise, who is ‘a recognised market leader in the derivatives field’, acting for institutional clients such as Deutsche Bank and BNP Paribas as well as blue-chip corporates. The firm is also noted for its strength at associate level.
Berwin Leighton Paisner LLP’s team features experienced partners such as Mark Daley, Marc Palley and Tamara Box, and is noted for its ‘rapid responses and ability to combine legal advice with commercial practicality’. Kevin Cummings’ derivatives tax expertise and the litigation skills of David Hughes are in great demand.
Clients see CMS Cameron McKenna LLP as ‘very responsive and proactive and good value for complex negotiations’, with ‘impressive strength-in-depth’, and it has won new clients such as Lloyds Banking Group and Metzler Bank for OTC derivatives work. Jason Harding and Will Dibble are praised by clients and peers alike, and act for Deutsche Bank among others.
Denton Wilde Sapte LLP’s team is ‘invaluable for any query on Islamic derivatives’, and Matthew Sapte, Brett Hillis and Rosali Pretorius are ‘extremely helpful and prompt on complex issues’. The firm’s expertise in derivatives litigation and exchange-traded contracts is complemented by the ‘prompt, clear and commercially helpful’ advice of James Curtis on OTC trades.
Dewey & LeBoeuf is noted for its dedicated, problem-solving approach to European and emerging markets derivatives and structured deals, with clients including Morgan Stanley and Deutsche Bank. Bruce Johnston, Amanda Jennings and Fabio Pizzoccheri are ‘extremely reliable with vast legal knowledge much deeper than the average City lawyer’. Ugo Giordano’s Italian desk acts for many leading financial institutions and corporates.
Field Fisher Waterhouse LLP acts for many institutional asset managers, banks and investors, and its ‘business acumen and industry knowledge are very good’. The outstanding Guy Usher is ‘very practical, has an excellent understanding of all things ISDA, and provides imaginative solutions to complex problems’, and Edward Miller is ‘competent, thorough and dependable’.
Gide Loyrette Nouel LLP’s compact team is ‘very responsive and helpful, and takes a commercial approach’. Colin Mercer brings ‘masses of experience and provides very quick, sensible advice’, and Arnaud Duhamel and Scott Cameron also stand out. The team advises African structured finance player Iroko Securities, and also handles emerging markets equity derivatives work for Natixis and Crédit Suisse.
Lovells LLP’s focus on trustee work has been a boon, bringing in a number of long-term restructuring deals. David Hudd is widely acclaimed as a leading derivatives expert, and he and James Doyle are known for structured derivatives and SIV work.
Peter Green and Jeremy Jennings-Mares at Morrison & Foerster (UK) LLP have assisted over 25 banks with exposure to Lehman Brothers, unwinding CDOs and swap positions. Structured equity, credit and fund-linked deals are key strengths.
At Bryan Cave, Martha Collins Rolle’s ‘advice is practical and easy to interpret’. Clients praise her willingness to find creative solutions, and value the experience Stephen Ball gained in derivatives disputes at Bankers Trust and Nomura.
Although outside London, Graham Soar’s practice at Burges Salmon LLP is well known for representing corporates and funds, and advises BNP Paribas on equity derivatives. Soar and Helen Hancock, whose background includes ten years at Simmons & Simmons, are ‘committed and consistent’.
Eversheds LLP ‘always delivers, even when turnaround times are tight’. Antony Thomlinson’s team acts for buy-side clients such as Legal and General, and it has also been advising fund manager trade body the Investment Management Association.
Herbert Smith LLP’s new deals in 2008 included the Puma CLO, and it also handles of flow of equity derivatives and swaps work. Unicredit is a new structured finance client. Jake Jackaman and Dina Albagli are recommended.
Jones Day’s Ed Nalbantian, Liz Saxton and Amy Kho are recommended, and act for the likes of Citi Alternative Investments, Bank of America and EDF. Advice on unravelling distressed positions dovetails with the firm’s financial institution litigation team.
McDermott Will & Emery UK LLP has broadened its practice with lateral hires such as of Pierre Brochet from White & Case LLP. The practice now encompasses structured products ranging from cash and synthetic asset-backed instruments to derivatives and structured credit. Paul-Michael Rebus is recommended.
Clients are eager to recommend the ‘superior’ service of Milbank, Tweed, Hadley & McCloy LLP. James Warbey and John Walker have been busy with workouts of derivatives trades, and SIV restructurings including Cheyne and Whistlejacket.
Charles Kerrigan is singled out as an ‘excellent networker and relationship builder’ at Olswang, which is ‘more proactive than many firms’.
At Orrick, Herrington & Sutcliffe, Martin Bartlam and Jim Waddington’s deals in late 2008 included a €2.8bn five-year CDS, and the team has also been busy restructuring deals exposed to Lehman Brothers.
Clients value the expertise of Leon Stephenson at Reed Smith, whose experience includes advising investment banks on unwinding derivatives trades. Tom Hibbert is noted for his derivatives litigation expertise.
Brian Carne is the lynchpin of SJ Berwin LLP’s ‘practical, commercial, pragmatic’ practice. His experience in equity, fund and credit derivatives sees him advise major banks and corporates on structured deals.