Template:M summ 2002 ISDA Threshold Amount: Difference between revisions

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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 [[tier 1 capital|shareholder equity]] or USD100,000,000 — for a fund an equivalent portion of [[NAV]].
[[Threshold Amount - ISDA Provision|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 [[tier 1 capital|shareholder equity]] or USD100,000,000 — for a fund an equivalent portion of [[NAV]].

Revision as of 11:19, 23 June 2023

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 equity or USD100,000,000 — for a fund an equivalent portion of NAV.