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hello my name is seth bender and im the author of negotiating skills for the is the master agreement the essential playbook for over-the-counter derivatives ive worked as a capital markets attorney for the past five years and during the recent economic downturn served as a consultant for some of new yorks largest buy and sell side institutions all of these firms as a result of the lehman brothers bankruptcy the distressed sale of bear stearns and government interventions at large institutions such as aig and citigroup have increased their usage of the is the master agreement in an attempt to reduce risk of non-payment on their over-the-counter derivative trades for those that dont know or for new users of the is the master agreement parties to an is-to-master agreement can collateralize their transactions refuse to make payment to defaulting or potentially defaulting counterparties or terminate the transactions under the isd-master agreement for certain events and conditions of its