Par and Ratings trigger: Difference between pages

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imported>Doug Williamson
m (Spacing 21/8/13)
 
imported>Doug Williamson
(Expand first definition and link with Acceleration page.)
 
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#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 will trigger immediate repayment of the borrowing.
#A pricing grid in loan documentation, relating the pricing of the borrowing to the credit rating of the borrower.


The face value of an interest bearing instrument.


A bond whose market yield is equal to its coupon rate trades in the market at a value of par (= the face value).
== See also ==
 
* [[Acceleration]]
 
* [[Credit rating]]
2.
* [[Pricing grid]]
 
The value of an ordinary share (or a unit of common stock) for legal purposes.


 
[[Category:Treasury_operations_infrastructure]]
== See also ==
* [[Coupon rate]]
* [[Deep discount issue]]
* [[Face value]]
* [[Nominal value]]
* [[Par bond]]
* [[Par yield]]
* [[Redemption]]

Revision as of 13:50, 15 July 2015

  1. 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 will trigger immediate repayment of the borrowing.
  2. A pricing grid in loan documentation, relating the pricing of the borrowing to the credit rating of the borrower.


See also