Failure by either Party to deliver - GMSLA Provision: Difference between revisions

Failure by either Party to deliver - GMSLA Provision (view source)

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 ===Default interest===
-Are references here to interest to, like ''default'' interest under Clause 11.7? And if so are we in a world of LIBOR remediation?
+Are references here to interest to, like ''default'' interest under Clause {{gmslaprov|11.7}}? And if so are we in a world of {{t|LIBOR}} remediation?
-Well, this old fellow’s opinion is no. 11.7 is specific to costs following actual close out on an {{gmslaprov|Event of Default}} (a buy-in ''isn’t'' an {{gmslaprov|Event of Default}}), and only on professional expenses. The vibe here is ''you reimburse me my ''actual'' costs''. So, the ''actual interest'' cost I incurred in funding the securities I bought in, rather than some abstract derivative notion of my costs represented by a [[benchmark]].
+Well, this old fellow’s opinion is no. Clause {{gmslaprov|11.7}} of the {{gmsla}} is specific to costs following ''actual'' [[close out]] on an {{gmslaprov|Event of Default}} (a {{gmslaprov|Buy-in}} ''isn’t'' an {{gmslaprov|Event of Default}}), and only on professional expenses. The vibe here is ''you reimburse me my ''actual'' costs''. So, the ''actual interest'' cost I incurred in funding the securities I bought in, rather than some abstract derivative notion of my costs represented by a [[benchmark]].
 ===Replacement costs and [[ISDA]] [[hedging]] language===