Template:M summ Credit Derivatives 1.3: Difference between revisions
Amwelladmin (talk | contribs) (Created page with "It is deliciously elliptical, and classic carry-on from {{icds}} to define a term in a way that is not only itself an embedded definition, but also one that categorically tells you less about the term than the original definier. Buyer is a useful label. From it we surmise that this must be the person buying credit protection. Right? And so it is. True, the Buyer also happens to be the Fixed Rate Payer, in that it pays a pre-agreed, fixed premium for the credit pro...") |
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It is deliciously elliptical, and classic carry-on from {{icds}} to define a term in a way that is not only itself an embedded [[definition]], but also one that categorically tells you less about the term than the original definier. | [[Buyer - Credit Derivatives Provision|It]] is deliciously elliptical, and classic carry-on from {{icds}} to define a term in a way that is not only itself an embedded [[definition]], but also one that categorically tells you less about the term than the original definier. | ||
Buyer is a useful label. | “{{cddprov|Buyer}}” is a useful label in itself. It doesn’t really ''need'' defining. We surmise that this “{{cddprov|Buyer}}” must be the person ''buying'' credit protection. Right? And so it is. | ||
Now it is also true that the Buyer also happens to be the {{cddprov|Fixed Rate Payer}}, in that it pays a pre-agreed, fixed premium — sorry, sorry, “{{cddprov|Fixed Amount}}” — for the credit protection it buys — but that takes us one step further removed from what is going on. We will need to travel as far as Section 12.6 of the definitions to find out what the {{cddprov|Fixed Rate Payer}} means. Don’t hold your breath: it is simply the party specified as such in the {{cddprov|Confirmation}}. | |||
Revision as of 12:53, 9 May 2023
It is deliciously elliptical, and classic carry-on from ISDA’s crack drafting squad™ to define a term in a way that is not only itself an embedded definition, but also one that categorically tells you less about the term than the original definier.
“Buyer” is a useful label in itself. It doesn’t really need defining. We surmise that this “Buyer” must be the person buying credit protection. Right? And so it is.
Now it is also true that the Buyer also happens to be the Fixed Rate Payer, in that it pays a pre-agreed, fixed premium — sorry, sorry, “Fixed Amount” — for the credit protection it buys — but that takes us one step further removed from what is going on. We will need to travel as far as Section 12.6 of the definitions to find out what the Fixed Rate Payer means. Don’t hold your breath: it is simply the party specified as such in the Confirmation.