imported>Doug Williamson |
imported>Doug Williamson |
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| ''Borrowing and lending - documentation - finance party default - Loan Market Association (LMA).''
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| Lehman provisions are parts of loan agreements designed to address the risk of default by a lender or an agent bank.
| | A market for financial assets when those assets are first offered for sale. |
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| :<span style="color:#4B0082">'''''Commentary on the Lehman provisions'''''</span>
| | For example, on the flotation of a company or the issue of a bond. |
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| :"The risk of finance party default under a loan agreement is a risk factor that the loan market moved swiftly to address following the collapse of Lehman Brothers.
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| :The LMA’s response was to create a set of optional 'Finance Party Default' clauses, which were first published in 2009. These are often colloquially referred to as the 'Lehman provisions'...
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| | | In relation to loans, the market in which the borrowers and the original lenders deal with one another. |
| :Most of the Lehman provisions are a welcome addition to facility documentation for borrowers.
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| :They are widely used and, generally speaking, the main concepts addressed by the LMA drafting will be familiar to those who have negotiated loan documentation since 2009.
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| :This might suggest that the most commonly used aspects should be incorporated into the Investment Grade Agreements..."
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| :''The ACT Borrower’s Guide to the LMA’s Investment Grade Agreements - 6th edition - 2022 - p377.''
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| == See also == | | == See also == |
| * [[Default]] | | * [[Bond]] |
| * [[Defaulting lender]] | | * [[Capital market]] |
| * [[Documentation]] | | * [[Float]] |
| * [[Event of default]] | | * [[Flotation]] |
| * [[Facility]] | | * [[Initial public offering]] |
| * [[Finance party default]] | | * [[Private company]] |
| * [[Impaired agent]] | | * [[Proprietary trading]] |
| * [[Investment Grade Agreements]] | | * [[Public company]] |
| * [[Lehman ]] | | * [[Secondary market]] |
| * [[Loan agreement]] | | * [[Shallow discount bond]] |
| * [[Loan Market Association]] (LMA)
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| * [[Provision]]
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| ==Other resource==
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| * [https://www.treasurers.org/hub/best-practice/borrowers-guide-LMA-investment-grade-agreements The ACT Borrower’s Guide to the LMA’s Investment Grade Agreements - 2022 - p377]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Corporate_financial_management]] |
| [[Category:The_business_context]]
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| [[Category:Corporate_finance]]
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| [[Category:Investment]]
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| [[Category:Long_term_funding]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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| [[Category:Risk_reporting]]
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| [[Category:Cash_management]]
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| [[Category:Financial_products_and_markets]]
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| [[Category:Liquidity_management]]
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