Default under specified transaction: Difference between revisions

Default under specified transaction (view source)

492 bytes removed , 12 January 2017

82,892

edits

@@ Line 5: / Line 5: @@
 It can be compared to [[cross default]], which allows you to terminate your master agreement when the counterparty defaults under indebtedness ''to a third party'' (not you).
-===Differences between cross default and DUST===
+{{DUST and Cross Default Comparison}}
-*'''[[Cross default]]''' generally references indebtedbess; '''[[DUST]]''' references bilateral derivative and trading transactions whcih are not in the nature of indebtedness;
-*'''[[Cross default]]''' is only triggered once a certain threshold amount of indebtedness is defaulted upon; '''[[DUST]]''' is triggered upon any breach;
-*'''[[Cross default]]''' references your counterparty owes to a third party; '''[[DUST]]''' references other obligations your counterparty owes you.
 ===See also===