Πιστωτικό Γεγονός, κατά την επίσημη έννοια του όρου στις αγορές, δεν είναι ότι κατέβει στου καθενός το κεφάλι, αλλά είναι μία συγκεκριμένη μόνο περίπτωση αθέτησης πληρωμής, όταν αυτή αφορά χρεόγραφα καλυμμένα με συμβόλαια αντιστάθμισης πιστωτικού κινδύνου, τα λεγόμενα CDS.
In more narrow terms, Credit Event can sometimes refer only to a general payment default event related to legal entity’s inability to service previously agreed financial obligation (failure to pay).
Failure to Pay definition
In finance, failure to pay is a common credit event which is defined as a failure of the reference entity to make, when and where due, any payments under one or more obligations. The failure to payment is critical to the credit risk borne by a protection buyer under a credit derivative product. In a securitization transaction, a failure to pay by an underlying reference entity typically encompasses a situation in which a guarantee payment would be triggered.
ΠΗΓΗ :
http://www.bankopedia.net/credit-event-definition/
ISDA Credit Event definitions are a part of 1999 Credit Derivative Definitions. The 1999 Definitions are standard industry terms which are usually incorporated by contracting parties in their swap agreements.
The 6 Credit Events under ISDA Definitions are:
Άλλο η ΑΘΕΤΗΣΗ ΠΛΗΡΩΜΗΣ και άλλο το ΠΙΣΤΩΤΙΚΟ ΓΕΓΟΝΟΣ !!!
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Credit Event definition
Credit Event is a financial term commonly used to describe a financial event related to a legal entity which triggers specific protection provided by a guarantee or a credit derivative. Typical credit events used in credit derivatives transactions are bankruptcy, failure to pay, restructuring, repudiation and moratorium.In more narrow terms, Credit Event can sometimes refer only to a general payment default event related to legal entity’s inability to service previously agreed financial obligation (failure to pay).
Failure to Pay definition
In finance, failure to pay is a common credit event which is defined as a failure of the reference entity to make, when and where due, any payments under one or more obligations. The failure to payment is critical to the credit risk borne by a protection buyer under a credit derivative product. In a securitization transaction, a failure to pay by an underlying reference entity typically encompasses a situation in which a guarantee payment would be triggered.
ΠΗΓΗ :
http://www.bankopedia.net/credit-event-definition/
Η ΜΕΤΑΘΕΣΗ ΤΗΣ ΠΛΗΡΩΜΗΣ ΤΗΣ ΔΟΣΗΣ ΤΟΥ ΔΝΤ, ΜΕΡΙΚΗ Ή ΟΛΙΚΗ, ΣΤΗ ΧΕΙΡΟΤΕΡΗ ΠΕΡΙΠΤΩΣΗ ΘΑ ΘΕΩΡΗΘΕΙ ΩΣ ΑΘΕΤΗΣΗ ΠΛΗΡΩΜΗΣ, Η ΟΠΟΙΑ ΕΠΕΙΔΗ ΔΕΝ ΘΑ ΕΝΕΡΓΟΠΟΙΗΣΕΙ CDS, ΔΕΝ ΘΑ ΚΑΤΑΓΡΑΦΕΙ ΩΣ ΠΙΣΤΩΤΙΚΟ ΓΕΓΟΝΟΣ ΚΑΤΑ ΤΗΝ ΕΠΙΣΗΜΗ ΕΝΝΟΙΑ ΤΟΥ ΟΡΟΥ, ΟΠΩΣ ΑΥΤΗ ΚΑΘΟΡΙΖΕΤΑΙ ΑΠΟ ΤΟΝ ΕΠΙΣΗΜΟ ΦΟΡΕΑ ΕΚΚΑΘΑΡΙΣΗΣ CDS, ΔΗΛΑΔΗ ΤΟΝ ISDA.
ISDA Credit Event definitions
The 1999 Definitions have been replaced by 2003 Definitions. ISDA Credit Event definitions are a part of 1999 Credit Derivative Definitions. The 1999 Definitions are standard industry terms which are usually incorporated by contracting parties in their swap agreements.
The 6 Credit Events under ISDA Definitions are:
- Bankruptcy
- Obligation Acceleration
- Obligation Default
- Failure to Pay
- Repudiation/Moratorium
- Restructuring
A. CREDIT EVENTS
1. Bankruptcy
Bankruptcy in the 1999 Definitions mirrors the wording of Section 5(a)(vii) of the ISDA Master Agreement. It is widely drafted so as to be triggered by a variety of events associated with bankruptcy or insolvency proceedings under English law and New York law, as well as analogous events under other insolvency laws.
ISDA is aware that the scope of the definition of Bankruptcy may be wider than insolvency-related events falling within the credit assessment criteria used by rating agencies. Certain actions taken by the reference entity, for instance, a board meeting or a meeting of shareholders to consider the filing of a liquidation petition, could be argued as being in furtherance of an act of bankruptcy and thus triggering a Credit Event, even though such act would not generally be considered a bankruptcy event in the context of credit assessment by a rating agency. Therefore, the inclusion of this Credit Event could provide credit protection ahead of such circumstances.
By contrast, a guarantee would not typically provide any protection against insolvency-related events ahead of an actual failure to pay.
2. Obligation Acceleration
Obligation Acceleration covers the situation, other than a Failure to Pay, where the relevant obligation becomes due and payable as a result of a default by the reference entity before the time when such obligation would otherwise have been due and payable. The Default Requirement builds in a minimum threshold which the relevant sum being accelerated must exceed before the Credit Event occurs.
The scope of this Credit Event forms a subset of that of Obligation Default. Thus if Obligation Default is specified as a Credit Event in the relevant credit derivatives transaction, this Credit Event will only be of relevance if the Default Requirement is lower than that in respect of the Obligation Default.
The credit considerations are discussed under Obligation Default below.
3. Obligation Default
Obligation Default covers the situation, other than a Failure to Pay, where the relevant obligation becomes capable of being declared due and payable as a result of a default by the reference entity before the time when such obligation would otherwise have been capable of being so declared. The Default Requirement builds in a minimum threshold which the relevant sum being defaulted or capable of being accelerated must exceed before the Credit Event occurs.
It may be important to note that the concept of "default" used in the present context refers to a default under the relevant provisions of the relevant contract or agreement.
4. Failure to Pay
Failure to Pay is defined to be a failure of the reference entity to make, when and where due, any payments under one or more obligations. Grace periods for payment are taken into account.
The failure of payment is critical to the credit risk borne by a protection buyer under a credit derivative product. A failure to pay by an underlying reference entity also encompasses the situations in which guarantee payments are generally triggered.
5. Repudiation/Moratorium
Repudiation/Moratorium deals with the situation where the reference entity or a governmental authority disaffirms, disclaims or otherwise challenges the validity of the relevant obligation. A default requirement threshold is specified.
6. Restructuring
Restructuring covers events as a result of which the terms, as agreed by the reference entity or governmental authority and the holders of the relevant obligation, governing the relevant obligation have become less favourable to the holders that they would otherwise have been. These events include a reduction in the principal amount or interest payable under the obligation, a postponement of payment, a change in ranking in priority of payment or any other composition of payment. A default threshold amount can be specified.
This approach purports to adopt an objective approach by identifying specific events that are typical elements of a restructuring of indebtedness. As restructuring events could be those undertaken by a reference entity that would result in the credit quality being improved or remaining the same, the Credit Event under the 1999 Definitions is specified not to occur in circumstances where the relevant event does not result from a deterioration in the creditworthiness or financial condition of the reference entity.
ΠΗΓΗ ;
http://credit-deriv.com/isdadefinitions.htm
