Derivatives · glossary
Two terms with nearly the same name. The loan's Break Costs cover a lender's loss to the end of the current interest period, and were nil because Atlas prepaid on a period end. A swap's break cost is the value of every quarter left, and can run either way. Confirmation 3 · FA definition: Break Costs · Chapter 9
Explained in Chapter 9, What the Swap Is Worth, of Derivatives.
The prepayment produced two numbers with nearly the same name. Break Costs, with capitals, is a defined term of the Facility Agreement. Break cost, in lower case, is market shorthand for the cost of ending a derivative early.Read Chapter 9, What the Swap Is Worth →
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