Template:M summ 2002 ISDA Applicable Close-out Rate: Difference between revisions

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Truly from the {{isia}} file — almost in the [[shoot me]] file. This whole game of pan-dimensional chess, with ''six'' different rates to apply in different circumstances, is all just to work out how to accrue interest on {{isdaprov|Unpaid Amount}}s and {{isdaprov|Early Termination Amount}}s when closing out. You get a strong sense that the pragmatists of {{icds}} — if there are any — had well and truly tuned out and gone to the bar by the the ’squad got to this definition. Looking on the bright side, ''at least it doesn’t mention [[LIBOR]]''.<ref>[[File:Dramatic Chipmunk.png|left|100px|frameless]]Did someone say ''[[LIBOR]]''?</ref>
Truly from the {{isia}} file — almost in the [[shoot me]] file. This whole game of pan-dimensional chess, with ''six'' different rates to apply in different circumstances, is all just to work out how to accrue interest on {{isdaprov|Unpaid Amount}}s and {{isdaprov|Early Termination Amount}}s when closing out. You get a strong sense that the pragmatists of {{icds}} — if there are any — had well and truly tuned out and gone to the bar by the the ’squad got to this definition. Looking on the bright side, ''at least it doesn’t mention [[LIBOR]]''.<ref>[[File:Dramatic Chipmunk.png|left|100px|frameless]]Did someone say ''[[LIBOR]]''?</ref>
You have the {{isdaprov|Default Rate}}, the {{isdaprov|Non-default Rate}}, the {{isdaprov|Applicable Deferral Rate}}, and the {{isdaprov|Termination Rate}}. Depending on how and why you have closed out the {{2002ma}}, and whether you were at fault, a different rate will apply.
The four rates are:
*{{Nutshell 2002 ISDA Default Rate}}
*{{Nutshell 2002 ISDA Non-default Rate}}
*{{Nutshell 2002 ISDA Termination Rate}}
All sensible enough, if not a little over-determined — and then the ''three'' “'''{{isdaprov|Applicable Deferral Rate}}s'''”, which convert this from something that is merely [[tedious]] to the stuff of a [[Hieronymus Bosch nightmare]].

Revision as of 14:40, 30 May 2023

Truly from the I’m sorry I asked file — almost in the shoot me file. This whole game of pan-dimensional chess, with six different rates to apply in different circumstances, is all just to work out how to accrue interest on Unpaid Amounts and Early Termination Amounts when closing out. You get a strong sense that the pragmatists of ISDA’s crack drafting squad™ — if there are any — had well and truly tuned out and gone to the bar by the the ’squad got to this definition. Looking on the bright side, at least it doesn’t mention LIBOR.[1]

  1. ↑
    Did someone say LIBOR?
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