Threshold Amount - ISDA Provision: Difference between revisions
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{{ | {{isdaanat|Threshold Amount}} | ||
A key feature of the Cross Default | A key feature of the {{isdaprov|Cross Default}} {{isdaprov|Event of Default}} 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 19:44, 12 January 2020
A key feature of the Cross Default Event of Default 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.