Par bond and Ratings trigger: Difference between pages

Revision as of 13:50, 15 July 2015

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.

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-A bond redeemable at par which is currently trading at a market price equal to its par value.
+#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 current market yield on the par bond is therefore equal to its coupon rate.
+== See also ==
+* [[Acceleration]]
+* [[Credit rating]]
+* [[Pricing grid]]
-== See also ==
+[[Category:Treasury_operations_infrastructure]]
-* [[Bond]]
-* [[Coupon rate]]
-* [[Par]]