Synthetic Security Counterparty definition

Synthetic Security Counterparty means an entity (other than the Issuer) required to make payments on a Synthetic Security (including any guarantor), which entity or guarantor has a rating of at least "A" by S&P, the long-term senior unsecured debt of such entity or guarantor (or its secured debt if such entity or guarantor is a trust and its debt is secured by a Reference Obligation) has a rating of at least "A" by S&P, or the short-term debt rating of such entity or guarantor is at least "A-1" by S&P, in each such case, at the date of purchase or execution of the related Synthetic Security documentation.

Synthetic Security Counterparty means any counterparty under a Synthetic Security or any guarantor of any such entity or, in the case of a Synthetic Security that represents an ownership interest in one or more assets held by the issuer of such Synthetic Security, any entity required to make payments on any such asset which meets the Rating Requirement (or whose obligations are guaranteed by a guarantor which satisfies the applicable Rating Requirement) at the time of entry into such Synthetic Security and, in the case of a Synthetic Security which is a swap transaction, which has the regulatory capacity, as a matter of Dutch law, to enter into derivatives transactions with Dutch residents.

Examples of Synthetic Security Counterparty in a sentence

Consequently, the Issuer will be subject to the credit risk of the Synthetic Security Counterparty as well as that of the Reference Entity.
However, as a result of the terms of the Synthetic Security and the assumption of the credit risk of the applicable Synthetic Security Counterparty, a Synthetic Security may have a different expected return, a different (and potentially greater) probability of default, a different (and potentially greater) expected loss characteristic following a default and a different (and potentially lower) expected recovery following default.
As a result, concentrations of Synthetic Securities in any one Synthetic Security Counterparty subject the Notes to an additional degree of risk with respect to defaults by such Synthetic Security Counterparty as well as by the Reference Entity.
In addition, in the event of the insolvency of the Synthetic Security Counterparty, the Issuer will be treated as a general creditor of such Synthetic Security Counterparty, and will not have any claim with respect to the Reference Obligation.
The Rating Agencies may downgrade any of the Notes if the Issuer is not in compliance with the Synthetic Security Counterparty Rating Requirements set forth herein.

More Definitions of Synthetic Security Counterparty

Synthetic Security Counterparty means an entity required to make payments to the Issuer on a Synthetic Security to the extent that a Reference Obligor makes payments on a related Reference Obligation, which counterparty, or the long-term senior unsecured debt of such counterparty (or its secured debt if such counterparty is a trust and its debt is secured by a Reference Obligation), will be rated such that the Synthetic/Participation Sublimit will be satisfied.

Synthetic Security Counterparty means any counterparty required to make payments on a Synthetic Security, which counterparty satisfies the applicable Rating Requirement (or whose obligations are guaranteed by a guarantor which satisfies the applicable Rating Requirement) and in respect of a Synthetic Security which is a Collateralised Credit Default Swap which has the regulatory capacity, as a matter of Dutch law, to conduct derivatives business with residents of The Netherlands.

Synthetic Security Counterparty means any entity required to make payments on a Synthetic Security to the extent that a Reference Obligor makes payments on the related Reference Obligation.

Synthetic Security Counterparty means an entity required to make payments on a Synthetic Security pursuant to the terms of such Synthetic Security or any guarantee thereof to the extent that a Reference Obligor makes payments on a related Reference Obligation, (a) which counterparty, or the long-term senior unsecured debt of such counterparty (or its secured debt if such counterparty is a trust and its debt is secured by a reference obligation), will individually and, together with all other Synthetic Security Counterparties, in the aggregate satisfy the required debt ratings set forth in the table below, (b) which each of the Rating Agency has confirmed will not cause the downgrade or withdrawal of its then-current rating on the Rated Notes and (c) the addition of such Synthetic Security will not cause the number of different Hedge Counterparties, Securities Lending Counterparties and Synthetic Security Counterparties currently involved in transactions with the Issuer to exceed

Synthetic Security Counterparty means any counterparty required to make payments to the Issuer under a Synthetic Security pursuant to the terms of such Synthetic Security or any guarantor of any such entity, provided that such counterparty satisfies the applicable Required Ratings and has the regulatory capacity andauthority to conduct derivatives business with residents of The Netherlands as a matter of the law of The Netherlands.

Synthetic Security Counterparty means any entity that is required to make payments on a Synthetic Security pursuant to the terms of such Synthetic Security and which entity (or guarantor thereof) upon entry into such Synthetic Security (i) has a short-term rating of at least "A-1" by S&P or, if no short-term rating is available by S&P, a long-term rating of at least "A+" by S&P and (ii) has a short-term rating of at least "P-1" by Moody's or, if no short-term rating is available by Moody's, a long-term rating of at least "A2" by Moody's; provided that such Synthetic Security Counterparty shall post collateral to the related Synthetic Security Issuer Account pursuant to the terms of the related Synthetic Security if such entity (or guarantor thereof) fails to have either (x) a short-term rating of at least "A-1" or, if no short-term rating is available by S&P, a long-term rating of at least "A+" by S&P or (y) a short-term rating of at least "P-1" by Moody's or, if no short-term rating is available by Moody's, a long-term rating of at least "A2" by Moody's. "Reference Obligation" means an Asset-Backed Security upon which a Synthetic Security is based; provided that such Asset-Backed Security is not itself a Synthetic Security, and at the time the Issuer purchases the Synthetic Security such Asset-Backed Security satisfies the definition of Portfolio Collateral. "Reference Obligor" means the obligor on a Reference Obligation.

Synthetic Security Counterparty means any financial institution counterparty required to make payments to the Issuer under a Synthetic Security pursuant to the terms of such Synthetic Security (or any guarantor of any such entity) having a rating of at least the applicable Rating Requirement and, additionally in the case of a swap transaction, the regulatory capacity as a matter of Dutch law to enter into derivatives transactions with Dutch residents;