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Programme limit: Difference between revisions
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{{a|contract|{{stupidbanker}}}}Ordinarily — and as we will see, “ordinarily”, in the sense of “as long as you are not in America”, is an important caveat — the programme limit inserted in an [[Medium term note|MTN programme]] is a mere bagatelle: an arbitrary number included only out of a time-honoured sense of it being the right thing to do, since generations of [[legal eagle]]<nowiki/>s before us have always done it — that being the most compelling reason any [[legal eagle]] ever does anything. | {{a|contract|{{stupidbanker}}{{disaster roll|BarclaysMTN}}}}Ordinarily — and as we will see, “ordinarily”, in the sense of “as long as you are not in America”, is an important caveat — the programme limit inserted in an [[Medium term note|MTN programme]] is a mere bagatelle: an arbitrary number included only out of a time-honoured sense of it being the right thing to do, since generations of [[legal eagle]]<nowiki/>s before us have always done it — that being the most compelling reason any [[legal eagle]] ever does anything. | ||
The idea of a programme limit was that existing holders of an issuer’s [[medium term note]]<nowiki/>s might want some comfort that the issuer of that note will not go batshit crazy and rack up trillions of dollars in indebtedness under the programme, levering its operation to breaking point and, thereby, prejudicing the market value of those existing notes. Thus, programmes would have a limit: you may only have, say, $10bn in MTNs outstanding at any time. | The idea of a programme limit was that existing holders of an issuer’s [[medium term note]]<nowiki/>s might want some comfort that the issuer of that note will not go batshit crazy and rack up trillions of dollars in indebtedness under the programme, levering its operation to breaking point and, thereby, prejudicing the market value of those existing notes. Thus, programmes would have a limit: you may only have, say, $10bn in MTNs outstanding at any time. | ||