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Cross default: Difference between revisions
→Credit Mitigation
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===Credit Mitigation=== | ===Credit Mitigation=== | ||
Cross Default is intended to be a tool for mitigating credit exposure. It should be set at a level which reflects a material credit concern in the context of the entire enterprise. By convention, the market generally imposes a Threshold Amount equating to between 2 and 3 percent of shareholders’ funds | Cross Default is intended to be a tool for mitigating credit exposure. It should be set at a level which reflects a material credit concern in the context of the entire enterprise. By convention, the market generally imposes a Threshold Amount equating to between 2 and 3 percent of shareholders’ funds. | ||
===Credit Support Annex=== | ===Credit Support Annex=== | ||