82,891
edits
Payments waterfall: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 12: | Line 12: | ||
==Rating agencies and the “flip clause”== | ==Rating agencies and the “flip clause”== | ||
[[File:Flip Scenarios.pdf|page=1|600px]] | |||
It became ''a la mode'' in the dog days of the [[CDO]] market for rating agencies to require the priority as between [[Counterparty|swap counterparty]] and [[noteholder]]s to be inverted upon a swap counterparty insolvency — this is the so-called rating agency “flip” clause. | It became ''a la mode'' in the dog days of the [[CDO]] market for rating agencies to require the priority as between [[Counterparty|swap counterparty]] and [[noteholder]]s to be inverted upon a swap counterparty insolvency — this is the so-called rating agency “flip” clause. | ||