Derivatives · glossary
A loan term that requires the borrower to hedge. Atlas's first loan had none, so the board hedged under its own policy. The new loan from Vantry requires half of the term loan to be hedged for three years. Chapter 11 · Chapter 13
Explained in Chapter 11, The Refinancing, Termination Events and the Orphaned Swap, of Derivatives.
The new loan also has a hedging covenant: Atlas must keep at least half the term loan hedged for three years. The old loan had no such promise. Atlas hedged it only because its own treasury policy said so.Read Chapter 11, The Refinancing, Termination Events and the Orphaned Swap →
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