December 18th, 2015, 3:26 pm
5. Repudiation/Moratorium is defined on ISDA as 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..In a deal we have a creditor and a borrower. In a correspondent credit event it seems that the borrower initially declared repudiation implies that borrower is not going to make due to day payment and then borrower and creditor may agree for moratorium which implies extension for payment(s) which probably signifies moratorium. My question is how does this credit event exists in real life?
Last edited by
list1 on June 14th, 2016, 10:00 pm, edited 1 time in total.