Threshold Amount - ISDA Provision: Difference between revisions
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{{fullanat2|isda|Threshold Amount|2002|Threshold Amount|1992}} | {{fullanat2|isda|Threshold Amount|2002|Threshold Amount|1992}} | ||
A key feature of the Cross Default definition in the {{isdama}}. This is the level over which accumulated [[indebtedness]] defaults comprise an {{isdaprov|Event of Default}}. Because of the [[snowball effect]] that a {{tag|cross default}} clause can have, it needs to be high. for a bank, typically 2 or 3% of [[shareholder’s equity]] or USD100,000,000 - for a fund an equivalent portion of [[NAV]] |
Revision as of 10:51, 6 February 2018
A key feature of the Cross Default definition in the ISDA Master Agreement. This is the level over which accumulated indebtedness defaults comprise an Event of Default. Because of the snowball effect that a cross default clause can have, it needs to be high. for a bank, typically 2 or 3% of shareholder’s equity or USD100,000,000 - for a fund an equivalent portion of NAV