Template:Isda 2(a)(iii) summ: Difference between revisions

====The problem with bilateral agreements====

As we have remarked before, most financing contracts are decidedly one-sided.  One party — the dealer, broker, bank: we lump these various financial service providers together as ''The Man'' — provides services, lends money, creates risk outcomes; the other — the customer — consumes them. Generally, the customer presents risks to The Man and not vice versa. All the weaponry is therefore pointed in one direction: the customer’s. It almost goes without saying that should the customer “run out of road”, the Man stands to ''lose'' something.

There is an argument it wasn’t a good idea then; there is a better argument it isn’t a good idea now, but like so many parts of this sacred form it is there and, for hundreds and thousands of ISDA trading arrangements, we are stuck with it.

====Does not apply to {{{{{1}}}|Termination Events}}====