Difference between revisions of "Partial Defeasance Action"
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For callable debt, an issuer has money set aside to redeem a portion of an issue and the indenture states that the securities could be called earlier than the stated maturity. | For callable debt, an issuer has money set aside to redeem a portion of an issue and the indenture states that the securities could be called earlier than the stated maturity. | ||
| − | In [[Securities | + | In [[Securities Trading]], where a [[Clearing House]] becomes counterparty to each side of a trade, after the trade has been agreed. This is necessary to facilitate netting, and reduce [[Counterparty Risk]]. The term has become popular because of the growth of central counterparty clearing services in European cash equities markets. |
| + | |||
| + | == Notes == | ||
| + | * [[SWIFT]]: Term:PDEF, "Partial Defeasance/Prefunding" | ||
== See Also == | == See Also == | ||
| − | * [http://financial-dictionary.thefreedictionary.com/defeasance | + | * [http://financial-dictionary.thefreedictionary.com/defeasance Free Dictionary] |
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[[Category:Corporate Actions Events]] | [[Category:Corporate Actions Events]] | ||
| + | [[Category:SWIFT]] | ||
{{#set: isDefinedBy | https://spec.edmcouncil.org/fibo/ontology/CAE/CorporateEvents/CorporateActionsEvents/index-en.html }} | {{#set: isDefinedBy | https://spec.edmcouncil.org/fibo/ontology/CAE/CorporateEvents/CorporateActionsEvents/index-en.html }} | ||
__SHOWFACTBOX__ | __SHOWFACTBOX__ | ||
Latest revision as of 12:10, 28 September 2021
Contents
Definition
Partial Defeasance Action. The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. Both the borrower's debt and the offsetting cash or bonds are removed from the Balance Sheet.
For callable debt, an issuer has money set aside to redeem a portion of an issue and the indenture states that the securities could be called earlier than the stated maturity.
In Securities Trading, where a Clearing House becomes counterparty to each side of a trade, after the trade has been agreed. This is necessary to facilitate netting, and reduce Counterparty Risk. The term has become popular because of the growth of central counterparty clearing services in European cash equities markets.
Notes
- SWIFT: Term:PDEF, "Partial Defeasance/Prefunding"
See Also
Disclaimer
This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.
