Template:M summ Credit Derivatives 3.13: Difference between revisions
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You get to specify one {{cddprov|Obligation Category}} and any number of {{cddprov|Obligation Characteristics}}. Fear not, though: the Obligation Categories are rather like nested Russian dolls: each smaller one fits in the one before. | You get to specify one {{cddprov|Obligation Category}} and any number of {{cddprov|Obligation Characteristics}}. Fear not, though: the Obligation Categories are rather like nested Russian dolls: each smaller one fits in the one before. | ||
==={{Cddprov|Obligation Categories=== | |||
So {{cddprov|Payment}} is about as wide as a payment obligation can be, and includes the Reference Entities day-to-day outgoings: rent, wages, utilities, even the paper bill, if you can find enough unpaid invoices to tot up to the {{cddprov|Default Requirement}}. | So {{cddprov|Payment}} is about as wide as a payment obligation can be, and includes the Reference Entities day-to-day outgoings: rent, wages, utilities, even the paper bill, if you can find enough unpaid invoices to tot up to the {{cddprov|Default Requirement}}. | ||
{{Cddprov|Borrowed Money}} requires some kind of [[indebtedness]] — much discussion can be had about what is and is not indebtedness under the {{isdaprov|Cross Default}} page. (This is something ISDA ninjas delight in fiddler with. They really shouldn’t). But in CDS land it is actually “money you gave someone, apropos nothing beyond the clear idea they might one day give it back. | {{Cddprov|Borrowed Money}} requires some kind of [[indebtedness]] — much discussion can be had about what is and is not indebtedness under the {{isdaprov|Cross Default}} page. (This is something ISDA ninjas delight in fiddler with. They really shouldn’t). But in CDS land it is actually “money you gave someone, apropos nothing beyond the clear idea they might one day give it back. | ||
Inside {{cddprov|Borrowed Money}} there are the two classic kinds of indebtedness: {{cddprov|Loan}}s — generally private, not easily<ref>Yes , yes, [[participation]]s, but if you have played with one of those you won’t think it easy way if transferring, at least not compared with just “handing a security to someone else”</ref> transferable, bilateral credit arrangements (or mildly multilateral — if there is a syndicate | Inside {{cddprov|Borrowed Money}} there are the two classic kinds of indebtedness: {{cddprov|Loan}}s — generally private, not easily<ref>Yes , yes, [[participation]]s, but if you have played with one of those you won’t think it easy way if transferring, at least not compared with just “handing a security to someone else”</ref> transferable, bilateral credit arrangements (or mildly multilateral — if there is a syndicate), and {{cddprov|Bonds}} — generally public, freely transferable, exchange-traded debt securities. Here you can choose one, the other, or both. | ||
==={{Cddprov|Obligation Characteristics}}=== | |||
Revision as of 14:50, 17 May 2023
You get to specify one Obligation Category and any number of Obligation Characteristics. Fear not, though: the Obligation Categories are rather like nested Russian dolls: each smaller one fits in the one before.
{{Cddprov|Obligation Categories
So Payment is about as wide as a payment obligation can be, and includes the Reference Entities day-to-day outgoings: rent, wages, utilities, even the paper bill, if you can find enough unpaid invoices to tot up to the Default Requirement.
Borrowed Money requires some kind of indebtedness — much discussion can be had about what is and is not indebtedness under the Cross Default page. (This is something ISDA ninjas delight in fiddler with. They really shouldn’t). But in CDS land it is actually “money you gave someone, apropos nothing beyond the clear idea they might one day give it back.
Inside Borrowed Money there are the two classic kinds of indebtedness: Loans — generally private, not easily[1] transferable, bilateral credit arrangements (or mildly multilateral — if there is a syndicate), and Bonds — generally public, freely transferable, exchange-traded debt securities. Here you can choose one, the other, or both.
Obligation Characteristics
- ↑ Yes , yes, participations, but if you have played with one of those you won’t think it easy way if transferring, at least not compared with just “handing a security to someone else”