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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? Well, companions, just ''not knowing'' is not how we contrarians roll. We ''like'' looking stupid. Compared with plain old ignorance, it speaks to having at least put in some ''effort'', even if wasted: noble but futile toil 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 director]]s, [[In-house lawyer|inhouse]] [[GC]]s 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.</ref> let us ''speculate''. | 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'' is not how we contrarians roll. We ''like'' looking stupid. Compared with plain old ignorance, it speaks to having at least put in some ''effort'', even if wasted: noble but futile toil 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 director]]s, [[In-house lawyer|inhouse]] [[GC]]s 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.</ref> let us ''speculate''. | ||
The first thing to say, is the {{isdaprov|Early Termination Date}} is ''not'' the date on which you must ''pay'' an {{isdaprov|Early Termination Amount}} nor, for that matter, even have ''calculated'' it: it is the date ''by reference to which'' you must calculate an Early Termination Amount. Thanks to the good graces of Sectrion {{isdaprov|6(d)}}, provided you so so as soon as reasonably practicable, you have time to calculate your values diligently and properly. So this leaves the mystery of ''why'' a party designating an Early Termination Date, for any reason, would’t just designate it ''now'' — and for those peculiar types who don’t want to do that, why there should be this arbitrary long-stop of 20 days. | |||
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 {{isdama}}. 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 {{isdama}}. 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. | ||