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| [[ATE]]s are likely to be the most haggled-over part of your {{isdama}}. | | [[ATE]]s are likely to be the most haggled-over part of your {{isdama}}. |
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| These are the ''other'' termination events your [[Credit officer|Credit department]] has dreamt up for this specific counterparty, that didn’t occur to the framers of the {{isdama}} — or, at any rate, weren’t sufficiently universal to warrant being included in the {{isdama}} for all. While the standard {{isdaprov|Termination Events}} tend to be “non-fault” events which justify termination of the relationship on economic grounds, but not on terms necessarily punitive to the {{isdaprov|Affected Party}}, Additional Termination Events are more “credity”, more susceptible of moral outrage, and as such more closely resemble {{isdaprov|Events of Default}} than {{isdaprov|Termination Events}}.
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| ===Examples===
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| Common ones include:
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| *[[NAV trigger|NAV triggers]] (for [[Hedge fund|hedge funds]])
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| *[[Key man]] provisions (for [[Hedge fund|hedge funds]])
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| *[[Investment manager]] insolvency or loss of licence
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| *Parent divestment (where counterparty is a financing subsidiary)
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| ===All they are cracked up to be?===
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| There is a school of thought that this serves the interests of the [[Negotiator|Ancient Guild of Contract Negotiators]] and the [[Credit officer|Worshipful Company of Credit Officers]] more than it does the shareholders of the institutions for whom these people ply their trade, for in these days of [[Threshold - CSA Provision|zero-threshold]] [[CSA|CSAs]], the real credit protections in the ISDA are the standard {{isdaprov|Events of Default}} (especially {{isdaprov|Failure to Pay or Deliver}} and {{isdaprov|Bankruptcy}}).
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| It’s a fair bet no-one in the organisation will have kept a record of how often you pulled [[NAV trigger]]. It may well be never.
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| “Ahh”, your [[credit officer]] will say, “but it gets the counterparty to the negotiating table”.
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| Hmmm.
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| ==={{t|Trick for young players}}=== | | ==={{t|Trick for young players}}=== |