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Termination event: Difference between revisions
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''See: {{isdaprov|Early Termination Event}}s under the {{isdama}}''. | ''See: {{isdaprov|Early Termination Event}}s under the {{isdama}}''. | ||
A [[termination event]] is a softer, gentler kind of [[event of default]]. | A [[termination event]] is a softer, gentler kind of [[event of default]]. | ||
Popularised by those habitual splitters of hairs, ISDA lawyers, {{isdaprov|Early Termination Event}}s are circumstances giving grounds to terminate an {{isdama}} that do not speak to the moral character or unacceptable [[creditworthiness]] of the {{isdaprov|Affected Party}} (so labelled, as opposed to a {{isdaprov|Defaulting Party}}. | Popularised by those habitual splitters of hairs, [[Mediocre lawyer|ISDA lawyers]], {{isdaprov|Early Termination Event}}s are circumstances giving grounds to terminate an {{isdama}} that do not speak to the moral character or unacceptable [[creditworthiness]] of the {{isdaprov|Affected Party}} (so labelled, as opposed to a ’{{isdaprov|Defaulting Party}}, who ''is'' such a turpitudinous wretch). | ||
So an {{isdaprov|Illegality}}, a {{isdaprov|Force Majeure}}, a {{isdaprov|Tax Event}}, a {{isdaprov|Tax Event Upon Merger}} or a {{isdaprov|Credit Event Upon Merger}} — all these things speak to the motion of vengeful gods above our mortal heads; seismic changes beyond our gift or capacity to control, and for whose provenance we can’t be | So an {{isdaprov|Illegality}}, a {{isdaprov|Force Majeure}}, a {{isdaprov|Tax Event}}, a {{isdaprov|Tax Event Upon Merger}} or a {{isdaprov|Credit Event Upon Merger}} — all these things speak to the motion of [[Force majeure|vengeful gods above our mortal heads]]; seismic changes beyond our gift or capacity to control, and for whose provenance we can’t roundly be blamed. | ||
There again, {{isdaprov|Additional Termination Event}}s — that category of other stuff thrown in for good measure by the | There again, {{isdaprov|Additional Termination Event}}s — that category of other stuff thrown in for good measure by the [[credit]] department, and which are assured to foul up your negotiation for months — these are more naughty in their bearing, and “defaulty” — but they still roll like {{isdaprov|ATE}}s. | ||
In most [[master trading agreement|master trading agreements]] this kind of dancing on a pinhead is of little moment and is scarcely to be encouraged (but let a creative [[credit officer]] loose on it, and you’ll be amazed what she can come up with), but the term, volatility and net exposure one can generate under an {{isdama}} make them a little special. | In most [[master trading agreement|master trading agreements]] this kind of dancing on a pinhead is of little moment and is scarcely to be encouraged (but let a creative [[credit officer]] loose on it, and you’ll be amazed what she can come up with), but the term, volatility and net exposure one can generate under an {{isdama}} make them a little special. | ||
And we all like to feel a little special | And we all like to feel a little special sometimes, don’t we? | ||