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

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===Excluding own credit deterioration===
===Excluding own credit deterioration===
{{eqderivprov|Increased Cost of Hedging}} excludes costs arising from the deterioration of its own credit — so it will tend to capture market wide cost increases, not ones that a are personal to the {{eqderivprov|Hedging Party}}. Assiduous sell-side [[broker|brokers]] will try to cut out the “deterioration of own credit” wording.
{{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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