Termination Rate - ISDA Provision: Difference between revisions

Termination Rate - ISDA Provision (view source)

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-{{isdaanat|Termination Rate}}Ballast, in a word: {{isdaprov|Termination Rate}} is an expression which features but ''once'' in the {{isdama}} — it is the fallback [[interest rate]] to apply to {{isdaprov|Early Termination Amount}}s, when all other methods haven’t worked, to accrue [[interest]] between determination and payment — and which, as you’ll see, amounts to the party’s own cross-my-heart-and-hope-to-die-but-I’m-still-not-going-t-justify-it cost of borrowing in the market.
+{{isdaanat|Termination Rate}}Ballast, in a word: {{isdaprov|Termination Rate}} is an expression which features but ''once'' in the {{isdama}} — it is the fallback [[interest rate]] to apply to {{isdaprov|Early Termination Amount}}s, when all other methods haven’t worked, to accrue [[interest]] between determination and payment — and which, as you’ll see, amounts to the party’s own cross-my-heart-and-hope-to-die-but-I’m-still-not-going-to-justify-it cost of borrowing in the market.
 Which scarcely would deserve a definition even if it was used repeatedly through the whole agreement.
 In any case, since on your own theory of the game, your counterparty is almost certainly a dead parrot at this point, spending too much time agonising about how much interest you can claim from it on a {{isdaprov|Close-out Amount}} you are not going to get paid in any case is hardly one of the better uses of your remaining time on this mortal coil.