Template:M summ Credit Derivatives 4.5: Difference between revisions

[[4.5 - Credit Derivatives Definitions|Note]] the contraction in scope brought about by the [[narrowly-tailored credit event]] annex.

===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}}.

*'''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 ilIndebtedness}}, which is usually [[borrowed money]] and may even be (unwisely, but still) widened from that.