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| {{manual|DEQ|2002|12.9(a)(vi)|Definition of||medium}} | | {{manual|DEQ|2002|12.9(a)(vi)|Definition of||medium}} |
| ''Compare with {{eqderivprov|Increased Cost of Stock Borrow}}, the equivalent provision where the {{eqderivprov|Hedging Party}} is [[short]].
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| Part of the famed “[[triple cocktail]]” of protections against unexpected problems hedging and risk managing {{isdaprov|Transaction}}s, together with {{eqderivprov|Hedging Disruption}} and {{eqderivprov|Change in Law}}. Note also references to {{eqderivprov|Hedging Party}}.
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| ===Excluding own credit deterioration===
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| {{eqderivprov|Increased Cost of Hedging}} excludes costs a {{eqderivprov|Hedging Party}} incurs through the deterioration of its own credit — so it will tend to capture market wide cost increases, and exclude those that are personal to the {{eqderivprov|Hedging Party}}. Assiduous sell-side [[broker|brokers]] will try to cut out the “deterioration of own credit” wording. Muscular [[asset manager]]s will tell them where to go.
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| {{triplecocktail}}
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| {{sa}}
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| *Consequences of an {{eqderivprov|Additional Disruption Event}} in particular {{eqderivprov|12.9(b)(vi)}}.
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| {{ref}}
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