83,371
edits
Amwelladmin (talk | contribs) |
Amwelladmin (talk | contribs) No edit summary |
||
Line 1: | Line 1: | ||
This is a page about the general concept of [[cross default]]. | This is a page about the general concept of [[cross default]]. | ||
For specific provisions in Master Trading Documents, see: | |||
*{{isdaprov|Cross Default}} ({{tag|ISDA}}) | *{{isdaprov|Cross Default}} ({{tag|ISDA}}) | ||
*{{gtmaprov|Cross Default}} ([[GTMA]]) | *{{gtmaprov|Cross Default}} ([[GTMA]]) | ||
*{{efetprov|Cross Default}} ([[EFET]]) | *{{efetprov|Cross Default}} ([[EFET]]) | ||
*'''Stock lending and repo have no cross default''': Neither the {{gmsla}} nor the {{gmra}} have, as standard, either a [[cross default]] or a [[default under specified transaction]] provision. | |||
===Compare and contras=== | |||
*[[default under specified transaction]] | |||
*[[Cross acceleration]]: like cross default, only for a kinder, gentler world. | |||
Cross Default is a concept that developed in the loan market. If Lender A advanced a large sum to a Borrower with only periodic interest or principal repayments, there would be long periods (between interest payments) - which may be months, quarters or even years where the Borrower had no payment obligations to Lender A. | Cross Default is a concept that developed in the loan market. If Lender A advanced a large sum to a Borrower with only periodic interest or principal repayments, there would be long periods (between interest payments) - which may be months, quarters or even years where the Borrower had no payment obligations to Lender A. |