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Fish or cut bait: Difference between revisions
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{{a|negotiation| | {{a|negotiation| | ||
[[File:shark pot.jpg|450px|thumb|center|Eytmology corner: Originally, “cut bait” referred to cutting up the bait into portions suitable for a hook. Latterly it has come to mean “cutting one’s fishing line” and giving up on fishing altogether. So, the expression has changed over time to “crap, or get off the pot”.]] | [[File:shark pot.jpg|450px|thumb|center|Eytmology corner: Originally, “cut bait” referred to cutting up the bait into portions suitable for a hook. Latterly it has come to mean “cutting one’s fishing line” and giving up on fishing altogether. So, the expression has changed over time to mean “crap, or get off the pot”.]] | ||
}} | }} | ||
“[[Use it or lose it]]”, in the vernacular. | “[[Use it or lose it]]”, in the vernacular. | ||
To carry on the rugby {{t|metaphor}}, when you have a good maul going forward, but momentum stalls and it looks like someone might have their hands on your ball, you might call “[[fish or cut bait]] | To carry on the rugby {{t|metaphor}}, when you have a good maul going forward, but momentum stalls and it looks like someone might have their hands on your ball, you might call “[[fish or cut bait]]!” to stop an untriggered [[termination event]] hovering indefinitely over you and freaking your out your investors. | ||
Let’s say you’ve had a wonky month — Coronavirus, right? —and there’s been a market drawdown on your [[assets under management|AUM]] — so much so that you have blown through [[NAV trigger]] you were forced into when you were a two-person start-up above a shoe-shop in Camden. | Let’s say you’ve had a wonky month — [[Coronavirus]], right? —and there’s been a market drawdown on your [[assets under management|AUM]] — so much so that you have blown through [[NAV trigger]] you were forced into when you were a two-person start-up above a shoe-shop in Camden. | ||
Suddenly, out of nowhere, your [[broker]] seems to have a gun to your head, but not much better an idea than you do what to ''do'' about it. {{sex|She}} keeps muttering nervously and changing the subject whenever you mention it. | Suddenly, out of nowhere, your [[broker]] seems to have a gun to your head, but not much better an idea than you do what to ''do'' about it. {{sex|She}} keeps muttering nervously and changing the subject whenever you mention it. | ||
Now you ''could'' ask for a [[NAV trigger]] ''waiver'',<ref>And you should: this will start a petulant war between the broker’s legal and credit teams about whose job it is to prepare and send it.</ref> but the moment you blow through an [[ATE]] never feels like the ''best'' time to crave your broker’s indulgence. It would be much better | Now you ''could'' ask for a [[NAV trigger]] ''waiver'',<ref>And you should: this will start a petulant war between the broker’s legal and credit teams about whose job it is to prepare and send it.</ref> but the moment you blow through an [[ATE]] never feels like the ''best'' time to crave your broker’s indulgence. It would be much better had you sorted this out back in the day, when you were negotiating docs: the weather was fair, the wind filled your sail, the [[sales]]guy was frisky, and all was well in the world. | ||
And so was born the “[[fish or cut bait]]” [[negotiation]] gambit. This is to say, “all right, have your stupid [[NAV trigger]] but, if it happens — and it won’t, of course, but for the purposes of argument let’s just say it did — ''be prepared to put your money where your mouth is''. You have a month, soldier: shoot, or put your gun away. For ''good''.” | |||
Quietly, risk officers quite ''like'' the idea of a silent, festering, trigger they can pull at any later stage should something unmentionable happen and there isn’t a better alternative. But carry on. Say, “look, I don’t want a Sword of Damocles hanging indefinitely over my head. If I am in the shtook, fair enough, put me out of my misery, but at least be prompt about it. And look — if I do make it to the end of the period without blowing up, can’t we assume I will be out of the woods?” | Quietly, [[Credit officer|risk officers]] quite ''like'' the idea of a silent, festering, trigger they can pull at any later stage should something unmentionable happen and there isn’t a better alternative. But carry on. Say, “look, I don’t want a Sword of Damocles hanging indefinitely over my head. If I am in the shtook, fair enough, put me out of my misery, but at least be prompt about it. And look — if I do make it to the end of the period without blowing up, can’t we assume I will be out of the woods?” | ||
Now we know a [[credit officer]]’s lot is not a happy one. She has wound up working in credit, for one thing: that can hardly have been the plan. Plus, she is generally overworked, under-appreciated, under-resourced and, by natural disposition, beset by existential doubts — that is in large part why she became a credit officer in the first place. She will say a [[fish or cut bait]] clause makes her life ''harder'': the cut-off time is inevitably arbitrary (true — but isn’t ''life'' arbitrary?); what counts as an {{isdaprov|ATE}} is often ambiguous (''was'' it an [[ATE]]? ''Did'' they exceed the {{isdaprov|Threshold Amount}}?) and in any weather, it is hard to calculate (is it 30 days from the actual event, or when you ''knew'' of the event, or when you ''ought reasonably to have known'' about it, and so on). | Now we know a [[credit officer]]’s lot is not a happy one. She has wound up working in credit, for one thing: that can hardly have been the plan. Plus, she is generally overworked, under-appreciated, under-resourced and, by natural disposition, beset by existential doubts — that is in large part why she became a credit officer in the first place. She will say a [[fish or cut bait]] clause makes her life ''harder'': the cut-off time is inevitably arbitrary (true — but isn’t ''life'' arbitrary?); what counts as an {{isdaprov|ATE}} is often ambiguous (''was'' it an [[ATE]]? ''Did'' they exceed the {{isdaprov|Threshold Amount}}?) and in any weather, it is hard to calculate (is it 30 days from the actual event, or when you ''knew'' of the event, or when you ''ought reasonably to have known'' about it, and so on). | ||