Increased Cost of Hedging - Equity Derivatives Provision: Difference between revisions

Increased Cost of Hedging - Equity Derivatives Provision (view source)

1 byte added , 4 March 2019

no edit summary

82,891

edits

@@ Line 4: / Line 4: @@
 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}}.
-===Counterparty credit deterioration===
+===Excluding own credit deterioration===
-{{gmlsaprov|Increased Cost of Hedging}} excludes costs arising from the deterioration of its own credit — so it will tend to caputre market wide cost increases, not ones that a are personal to the {{gmslaprov|Hedging Party}}. Assiduous sell-side [[broker|brokers]] will try to cut out the “deterioration of own credit” wording.
+{{gmslaprov|Increased Cost of Hedging}} excludes costs arising from the deterioration of its own credit — so it will tend to caputre market wide cost increases, not ones that a are personal to the {{gmslaprov|Hedging Party}}. Assiduous sell-side [[broker|brokers]] will try to cut out the “deterioration of own credit” wording.
 {{triplecocktail}}