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NAV trigger: Difference between revisions
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'''[[Credit]]''': “Help! Help! It’s a legal agreement! I am not qualified to do this! I cannot opine!”<br> | '''[[Credit]]''': “Help! Help! It’s a legal agreement! I am not qualified to do this! I cannot opine!”<br> | ||
You’ll never guess where the [[JC]]’s sympathies lie. | You’ll never guess where the [[JC]]’s sympathies lie. By the way, waiving a breach of contract is most unlikely to permanently change your contractual terms for the worse, whcih is a common fear of all [[legal eagles]] and [[credit officers]]. See more on this on [[waiver by estoppel]]. | ||
===So, put the NAV trigger in a [[margin lockup]]=== | ===So, put the NAV trigger in a [[margin lockup]]=== | ||
Presuming you have reserved the right, as any sensible [[prime broker]] will, to increase [[initial margin]] at any time, there is a way out of this. It ought to work perfectly well, though [[credit]] won’t like it: ''put [[NAV trigger]]s in the [[margin lockup]] and not the master agreement. | Presuming you have reserved the right, as any sensible [[prime broker]] will, to increase [[initial margin]] at any time, there is a way out of this. It ought to work perfectly well, though [[credit]] won’t like it: ''put [[NAV trigger]]s in the [[margin lockup]] and not the [[master agreement]]. | ||
(Why won’t [[credit ]] like it? ''Because it means they won’t have anything to do''.) | (Why won’t [[credit ]] like it? ''Because it means they won’t have anything to do''.) | ||