Examples of Credit Adjustment Spread in a sentence
Therefore, to minimize any value transfer while transitioning a facility from LIBOR to RFRs (which are near risk-free), a Credit Adjustment Spread (CAS) will be used to address the issue of potential transfer of economic value from one party to another as a result of changing the Reference Rate.
The Credit Adjustment Spread for each available Interest Period for a Loan shall be that which is set out in respect of that currency and the relevant period in the table below.
A unified way to process and interpret the various profiles taken into consideration is an important issue.
The rate of interest applicable to each such period shall be the aggregate (as determined by the Lender) of (a) two per cent (2%) per annum, (b) the Margin, (c) the Reference Rate and (d) the Credit Adjustment Spread for such periods.
In order to ensure consistency across our customer base, and as between currencies, we will apply the Credit Adjustment Spread to each relevant alternative reference rate in the same manner, regardless of whether your Interest Rate during the Initial Period is based on a fixed rate or a variable LIBOR.