Cross-currency interest rate swap and Cross default: Difference between pages

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m (Link with new Cross acceleration page. Categorise the page.)
 
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(CCIRS).  
''Loan documentation.''


A longer term derivative contract which is used to transform longer term interest rate-related obligations or assets in one currency, into another currency.   
A clause in a loan agreement.  It states that a default with any other lender will constitute a default under this agreement.
 
For example, a GBP-based firm with a USD borrowing might use a CCIRS to transform the USD borrowing into a synthetic GBP borrowing.
 
 
The concept of a CCIRS was developed from the (same-currency) interest rate swap market, which most commonly swaps fixed and floating interest rate streams in the same currency.
 
Same currency interest rate swaps exchange interest flows in the same currency (but calculated on different bases).
 
Cross currency interest rate swaps exchange interest flows denominated in different currencies.
 
Cross currency interest rate swaps usually exchange currency principal amounts at their maturity (unlike same-currency interest rate swaps).
 
 
Also known as Cross currency swap, Currency interest rate swap or Foreign currency swap.


It is designed for the benefit of the lender to ensure that they will enjoy a 'seat at the table' in any refinancing negotiations with the defaulting borrower.


== See also ==
== See also ==
* [[Asset-based swap]]
* [[Default]]
* [[CertFMM]]
* [[Event of default]]
* [[Cross currency swap]]
* [[Loan agreement]]
* [[Currency risk]]
* [[Materiality]]
* [[Currency swap]]
* [[Cross acceleration]]
* [[FX swap]]
* [[GBP]]
* [[Interest rate swap]]
* [[Swap]]
* [[Synthetic]]
* [[USD]]


[[Category:Manage_risks]]
[[Category:Long_term_funding]]
[[Category:Long_term_funding]]
[[Category:Treasury_operations_infrastructure]]

Revision as of 17:32, 13 June 2014

Loan documentation.

A clause in a loan agreement. It states that a default with any other lender will constitute a default under this agreement.

It is designed for the benefit of the lender to ensure that they will enjoy a 'seat at the table' in any refinancing negotiations with the defaulting borrower.

See also

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