Redemptions & Coupon Management
Prior to a Redemption event on a positon both counterparties should seek, where possible, to return and close out or swap the position to avoid having the asset out on loan over the redemption date. If a position is outstanding on the redemption date and confirmation from the agent of the redemption, proceeds of this should be agreed between counterparties and paid on the pay date of the event. Where applicable and if agreed between both counterparties the redemption proceeds can be netted with any cash collateral that has been exchanged on the position previously. As with redemptions, coupon payments on confirmation of the event, should be paid on pay date of the event. (IBP-152)
Already a member? Login to your account
Interested in Becoming a Member?
ISLA’s members span the breadth and depth of the securities lending industry, and there are many benefits of joining the Association’s network.Become a member today