PLAC and Pricing grid: Difference between pages

Revision as of 16:34, 25 July 2015

A clause in a loan document which links the pricing of the borrowing to the credit rating of the borrower.

Also known as a 'ratchet'.

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-Primary Loss Absorbing Capital.
+A clause in a loan document which links the pricing of the borrowing to the credit rating of the borrower.
-Used, especially in the UK, to refer to equity and bail-in-able long term debt of banks that can be written down in case of financial distress. It includes both equity and bail-in-able long-term debt.
+Also known as a 'ratchet'.
 == See also ==
+* [[Credit rating]]
+* [[Ratings trigger]]
+* [[Rating grid]]
-*[[Capital adequacy]]
+[[Category:Treasury_operations_infrastructure]]
-*[[SLAC]] - Secondary Loss Absorbing Capital
-*[[GCLAC]] also referred to as GLAC - gone-concern loss absorbing capital
-[[Category:Regulation_and_Law]]