Specified Indebtedness - ISDA Provision
2002 ISDA Master Agreement
A Jolly Contrarian owner’s manual™
Specified Indebtedness in all its glory
Related agreements and comparisons
Resources and Navigation
Specified Indebtedness is a simple and innocuous enough provision. Almost redundant, you’d think — why go to the trouble of defining “borrowed money” as another term? (Answer: because many firms, in their wisdom, will wish to change the definition in the Schedule to include derivatives, other trading exposures, things owed to their affiliates, or even any payment obligations of any kind, and for those people, “Specified Indebtedness” is a (somewhat) less loaded term.
- The JC’s famous Nutshell™ summary of this clause
- Should derivatives be included as “Specified Indebtedness”?
- Would stock loans and repos count as “borrowed money”?
- What about initial margin?