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Template:M summ Pledge GMSLA 10: Difference between revisions
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There’s — at this particular moment in time, and no other — a little ''tension'' in the air. As {{pgmslaprov|Borrower}} you need to satisfy your accountants that the assets really are yours, in case the {{pgmslaprov|Lender}} unexpectedly blows up; the {{pgmslaprov|Lender}} wants quick access to them, and to put aside all ceremony, in case ''you'' do. | There’s — at this particular moment in time, and no other — a little ''tension'' in the air. As {{pgmslaprov|Borrower}} you need to satisfy your accountants that the assets really are yours, in case the {{pgmslaprov|Lender}} unexpectedly blows up; the {{pgmslaprov|Lender}} wants quick access to them, and to put aside all ceremony, in case ''you'' do. | ||
Should we be unthinkably deep in the tail of improbable market events such that ''both'' parties are blowing up simultaneously — the sort of event that Fisher Black would tell you ''ought to be'' unobservable in a period several times the life in the universe, but that {{author|Nassim Nicholas Taleb}} likes to remind us ''does'' happen once every five years or so | Should we be unthinkably deep in the tail of improbable market events such that ''both'' parties are blowing up simultaneously — the sort of event that Fisher Black would tell you ''ought to be'' unobservable in a period several times the life in the universe, but that {{author|Nassim Nicholas Taleb}} likes to remind us ''does'' happen once every five years or so — these two contingencies can arrive at once. On the theory, the {{pgmslaprov|Borrower}}’s interest trumps the Lender’s, since the security interest keeps the assets out of range of the {{pgmslaprov|Borrower}}’s other creditors. But that is cold comfort for most [[Credit officer|credit sanctioners]], and besides, they don’t want to hang around waiting when collateral values are pogo-ing around with all the market dislocation. | ||
Thus the dynamics dealing with who can tell the escrow agent to do what at any point in time are — ''sensitive'', shall we say. Nowhere did {{islacds}} address this in the document. It can be dealt with by a little [[grace period]], requiring the credit officer to wait, not for long, but for long enough to satisfy a financial reporting officer that there is enough time to settle any debts, call off the dogs and carry sedately on. | Thus the dynamics dealing with who can tell the escrow agent to do what at any point in time are — ''sensitive'', shall we say. Nowhere did {{islacds}} address this in the document. It can be dealt with by a little [[grace period]], requiring the credit officer to wait, not for long, but for long enough to satisfy a financial reporting officer that there is enough time to settle any debts, call off the dogs and carry sedately on. | ||