Ratings trigger and Rational: Difference between pages

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1.
''Economics''.


A clause in loan documentation to protect the lender against deterioration in the credit rating of the borrower. For example, a ratings trigger might stipulate that if the credit rating falls below a specified level, this event might trigger immediate repayment of the borrowing.
Classical economics assumes that all market participants are profit-maximising and risk averse.


 
This combination of preferences is known as 'rational' in the efficient market hypothesis.
2.
 
A pricing grid in loan documentation, relating the pricing of the borrowing to the credit rating of the borrower.




== See also ==
== See also ==
* [[Acceleration]]
*[[Efficient market hypothesis]]
* [[Credit rating]]
*[[Profit maximisation]]
* [[Pricing grid]]
*[[Risk]]
*[[Risk averse]]


[[Category:Treasury_operations_infrastructure]]
[[Category:Corporate_financial_management]]

Revision as of 11:30, 21 March 2018

Economics.

Classical economics assumes that all market participants are profit-maximising and risk averse.

This combination of preferences is known as 'rational' in the efficient market hypothesis.


See also