Template:Specified indebtedness capsule: Difference between revisions

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 In any case, what should one make of “[[borrowed money]]”? Could it include [[repo]] and [[stock loan]] obligations under [[securities financing transaction]]s? Amounts owed to trade creditors? (In each case no, according to Simon Firth - see [[borrowed money|here]]).
 ====Initial margin: a [[trick for young players]]====
-What of a failure to pay an [{csaprov|Independent Amount}}? Technically this is ''not'' a payment of [[indebtedness]], and if the IM payer is up-to-date on [[variation margin]] payments, there may not be any indebtedness at all. Indeed, once the IM payer has paid required IM, the IM ''receiver'' becomes indebted to the ''payer'' for the return of the initial margin — so while it certainly comprises a failure to pay when due, the value of the {{{{{1}}}|Specified Indebtedness}} that failure contributes to the {{{{{1}}}|Threshold Amount}} might be nil, or even ''negative''. This, your risk people will say, is why one should widen {{{{{1}}}|Specified Indebtedness}} to include ''all'' payment obligations, but that, for a host of reasons you can find [[Cross Default - ISDA Provision|here]] — is whopping great ''canard a l’orange'' in this old contrarian’s opinion.
+What of a failure to pay an [{csaprov|Independent Amount}}? Technically this is ''not'' a payment of [[indebtedness]], and if the [[IM]] payer is up-to-date on [[variation margin]] payments, there may not be any indebtedness at all. Indeed, once the [[IM]] payer has paid required [[IM]], the [[IM]] ''receiver'' becomes indebted to the ''payer'' for the return of the [[initial margin]] — so while it certainly comprises a [[failure to pay]] when due, the value of the {{{{{1}}}|Specified Indebtedness}} that failure contributes to the {{{{{1}}}|Threshold Amount}} might be nil, or even ''negative''. This, your risk people will say, is why one should widen {{{{{1}}}|Specified Indebtedness}} to include ''all'' payment obligations, but that, for a host of reasons you can find [[Cross Default - ISDA Provision|here]] — is whopping great ''canard a l’orange'' in [[Jolly Contrarian|this old contrarian’s]] opinion.