Obligation Default
This Issue in United States
Obligation Default
Concept of Obligation Default in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A credit event term used in a credit derivative (i.e. an instrument that transfers risk from one party to the other) when one or more of the obligations of the reference entity have become capable of being declared due and payable before they would otherwise have been, due to an event of default of the reference entity (other than failure to pay). Normally caused when the obligation(s) under question are subject to cross-default provisions with the defaulted obligation(s).
Resources
See Also
- Derivatives Contract
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