Template:M summ Credit Derivatives 4.5: Difference between revisions
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[[4.5 - Credit Derivatives | [[4.5 - Credit Derivatives Provision|Note]] the contraction in scope brought about by the [[narrowly-tailored credit event]] annex. | ||
===Differences with Section {{isdaprov|5(a)(i)}}=== | ===Differences with Section {{isdaprov|5(a)(i)}}=== | ||
*'''Threshold''': There is a {{cddprov|Payment Obligation}} meaning that the payment has to exceed a threshold. Presumably one indicative of the Reference Entity’s general financial parlousness, but the parties are free to set it where they like. In this regard redolent of {{isdaprov|Cross Default}}. | *'''Threshold''': There is a {{cddprov|Payment Obligation}} meaning that the payment has to exceed a threshold. Presumably one indicative of the Reference Entity’s general financial parlousness, but the parties are free to set it where they like. In this regard redolent of {{isdaprov|Cross Default}}. | ||
*'''Agregation''': Also like {{isdaprov|Cross Default}}, it contemplates an aggregation of multiple failures perhaps under several {{cddprov|Obligations}}. Depending on how constrained your Obligations are — usually more so than {{isdaprov|Specified | *'''Agregation''': Also like {{isdaprov|Cross Default}}, it contemplates an aggregation of multiple failures perhaps under several {{cddprov|Obligations}}. Depending on how constrained your Obligations are — usually more so than {{isdaprov|Specified Indebtedness}}, which is usually [[borrowed money]] and may even be (unwisely, but still) widened from that. | ||
Revision as of 08:38, 24 April 2023
Note the contraction in scope brought about by the narrowly-tailored credit event annex.
Differences with Section 5(a)(i)
- Threshold: There is a Payment Obligation meaning that the payment has to exceed a threshold. Presumably one indicative of the Reference Entity’s general financial parlousness, but the parties are free to set it where they like. In this regard redolent of Cross Default.
- Agregation: Also like Cross Default, it contemplates an aggregation of multiple failures perhaps under several Obligations. Depending on how constrained your Obligations are — usually more so than Specified Indebtedness, which is usually borrowed money and may even be (unwisely, but still) widened from that.