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Template:20 days notice ISDA: Difference between revisions
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One is just expected to ''know''. Yet, in point of fact, no-one seems to. And no-one wants to risk looking stupid by asking, right? | One is just expected to ''know''. Yet, in point of fact, no-one seems to. And no-one wants to risk looking stupid by asking, right? | ||
Well, companions, just not knowing things is not how we contrarians roll. We ''like'' looking stupid. It is flattering in some lights. So, in the absence of a credentialised, plausible reason, let us ''speculate''. | Well, companions, just not knowing things is not how we contrarians roll. We ''like'' looking stupid. It is flattering in some lights. So, in the absence of a credentialised, plausible reason<ref>And we have done our due diligence, you know: in coming to this conclusion the [[JC]] has consulted [[Magic circle law firm]] partners, managing directors and even a former general counsel of ISDA, all of whom swore me to secrecy but were as nonplussed as, let’s face it, ''you'' are about this baffling clause.<r/ef>, let us ''speculate''. | ||
Remember the {{isdama}} was invented by banking folk: people who who view the cosmos chiefly through the prism of [[indebtedness]]<ref>Hence, a {{isdaprov|Cross Default}} clause in the [[ISDA]]. Well — can you think of another reason for it?</ref>. A [[lender]] whose [[borrower]] has defaulted will not dilly dally: she will bang in a default notice and seize whatever assets she can get her hand in ''poste haste''. I lend, you owe. I don’t muck about. [[Breakage costs]] on a [[loan]] are easy to calculate and they are not especially volatile. There is nothing to be gained by waiting around: The longer I take to terminate my [[exposure]] , the larger it is likely to be. | Remember the {{isdama}} was invented by banking folk: people who who view the cosmos chiefly through the prism of [[indebtedness]]<ref>Hence, a {{isdaprov|Cross Default}} clause in the [[ISDA]]. Well — can you think of another reason for it?</ref>. A [[lender]] whose [[borrower]] has defaulted will not dilly dally: she will bang in a default notice and seize whatever assets she can get her hand in ''poste haste''. I lend, you owe. I don’t muck about. [[Breakage costs]] on a [[loan]] are easy to calculate and they are not especially volatile. There is nothing to be gained by waiting around: The longer I take to terminate my [[exposure]] , the larger it is likely to be. | ||