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Amwelladmin (talk | contribs) (Created page with "{{isdaprov|Default Upon Specified Transaction}} — colloquially, “{{isdaprov|DUST}}” — is often confused with {{isdaprov|Cross Default}}. In fact, they’re ''meant'' t...") |
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{{isdaprov|Default | {{isdaprov|Default upon Specified Transaction}} — colloquially, “{{isdaprov|DUST}}” — is often confused with {{isdaprov|Cross Default}}. In fact, they’re ''meant'' to be mutually exclusive. That won’t stop folks conflating them, though. Look, we all do it. | ||
{{isdaprov|DUST}} is ''like'' {{isdaprov|Cross Default}}, but where {{isdaprov|Cross Default}} references indebtedness owed to third parties, {{isdaprov|DUST}} is all about ''non''-“borrowing” style transactions — e.g., [[swap|swap agreements]], [[stock loan]]s<ref>I know these ''sound'' like borrowing transactions, but they’re fully collateralised, and in fact aren’t.</ref> and [[repo]]s, '''but only transactions between the two counterparties'''<ref>And — sigh — their {{isdaprov|Credit Support Provider}}s and {{isdaprov|Specified Entities}}.</ref>. | {{isdaprov|DUST}} is ''like'' {{isdaprov|Cross Default}}, but where {{isdaprov|Cross Default}} references indebtedness owed to third parties, {{isdaprov|DUST}} is all about ''non''-“borrowing” style transactions — e.g., [[swap|swap agreements]], [[stock loan]]s<ref>I know these ''sound'' like borrowing transactions, but they’re fully collateralised, and in fact aren’t.</ref> and [[repo]]s, '''but only transactions between the two counterparties'''<ref>And — sigh — their {{isdaprov|Credit Support Provider}}s and {{isdaprov|Specified Entities}}.</ref>. | ||
If a [[Counterparty]]<ref>Or — sigh — its {{isdaprov|Credit Support Provider}} or {{isdaprov|Specified Entity}}</ref> experiences an {{isdaprov|Event of Default}} under a [[swap]] agreement (or other “{{isdaprov|Specified Transaction}}”<ref>This is typically wide, though it excludes [[borrowed money]] — but check the Agreement!</ref> with you, this will be an {{isdaprov|Event of Default}} under the {{isdama}}. | If a [[Counterparty]]<ref>Or — sigh — its {{isdaprov|Credit Support Provider}} or {{isdaprov|Specified Entity}}</ref> experiences an {{isdaprov|Event of Default}} under a [[swap]] agreement (or other “{{isdaprov|Specified Transaction}}”<ref>This is typically wide, though it excludes [[borrowed money]] — but check the Agreement!</ref> with you, this will be an {{isdaprov|Event of Default}} under the {{isdama}}. | ||