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NAV trigger: Difference between revisions
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Especially since an official [[NAV]] is only “cut” once for every “[[liquidity period]]” - monthly or quarterly in most cases - and it is hard to see how a [[credit officer]], however enthusiastic, could determine what the [[net asset value]] was at any other time. On the other hand, [[credit officer]]s don’t usually monitor NAV triggers anyway, so what do they care? | Especially since an official [[NAV]] is only “cut” once for every “[[liquidity period]]” - monthly or quarterly in most cases - and it is hard to see how a [[credit officer]], however enthusiastic, could determine what the [[net asset value]] was at any other time. On the other hand, [[credit officer]]s don’t usually monitor NAV triggers anyway, so what do they care? | ||
All rather tiresome, and quite unnecessary if you have the right, as most [[prime broker]]s do, to jack up [[initial margin]] at your discretion<ref>I know, I know, there may be a [[margin lockup]].</ref>. | All rather tiresome, and quite unnecessary if you have the right, as most [[prime broker]]s do, to jack up [[initial margin]] at your discretion<ref>I know, I know, there may be a [[margin lockup]]. That’s really the best place for the NAV trigger, as you may agree if you read on.</ref>. | ||
===Types of NAV trigger=== | ===Types of NAV trigger=== | ||