3 ms·
These bonds have a cross-default clause (not sure if correct term) which means if you default on one, you technically default on all of them (I guess exactly to
by odshoifsdhfs 5y ago
These bonds have a cross-default clause (not sure if correct term) which means if you default on one, you technically default on all of them (I guess exactly to prevent what you mean and screwing the lower ranked investors)
- bombcar 5y agoExactly. What it means is now all creditors can “call” their loans and demand payment in full - which causes a “run on the bank” type stampede usually. Unless it were made clear that only foreign creditors are going to get screwed, they will all call.