Derivatives · glossary
An event that becomes an Event of Default once notice is given or time passes. While one continues, the other side may hold back its payments, and the party's collateral Threshold falls to zero. Definition: Potential Event of Default · Chapter 7 · Chapter 8
Explained in Chapter 7, Payments, Netting and the Calendar, of Derivatives.
The condition looks at the other party, not at the payer. It also applies a step before default itself, at a Potential Event of Default…Read Chapter 7, Payments, Netting and the Calendar →
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an event or circumstance which, with the giving of notice or the passing of time or both, would be an Event of Default;Read the definition in the document →
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