cross default

简明释义

交互不履行

英英释义

例句

1.The company faced a cross default 交叉违约 situation after missing payments on its bonds and loans.

该公司在未能按时支付债券和贷款后，面临cross default 交叉违约的情况。

2.The loan agreement included a clause that triggered a cross default 交叉违约 if any of the borrower's other loans were in default.

贷款协议中包含了一项条款，如果借款人的其他贷款出现违约，将触发cross default 交叉违约。

3.Investors should be aware of the cross default 交叉违约 risk when assessing the creditworthiness of a company with multiple debts.

在评估一家拥有多笔债务的公司的信用worthiness时，投资者应注意cross default 交叉违约风险。

4.Before signing any agreements, it's crucial to understand the implications of a cross default 交叉违约 provision.

在签署任何协议之前，了解cross default 交叉违约条款的含义至关重要。

5.A cross default 交叉违约 clause can lead to a rapid escalation of financial distress for borrowers.

一项cross default 交叉违约条款可能会导致借款人财务困境迅速升级。

作文

In the world of finance and business, the term cross default refers to a situation where a default on one loan or financial obligation triggers a default on other loans or obligations. This concept is particularly relevant in the context of corporate financing and bond agreements. When a company borrows money, it often does so under multiple agreements with various lenders. If the company fails to meet its obligations under one agreement, such as missing a scheduled payment, the cross default clause allows lenders to declare all other debts due immediately. This mechanism serves as a protective measure for lenders, ensuring that if a borrower is struggling to meet one obligation, they are likely at risk of defaulting on others as well.Understanding cross default is crucial for investors and creditors because it can significantly affect their risk assessment and investment strategies. For instance, if a company has several loans and one of them has a cross default clause, a default on any single loan can jeopardize the entire financial structure of the company. This interconnectedness means that lenders must carefully evaluate the borrower's overall financial health before extending credit.Moreover, the implications of cross default extend beyond just the immediate financial consequences. It can also impact the company's credit rating, making it more difficult and expensive to borrow in the future. A lower credit rating may lead to higher interest rates on new loans, further exacerbating the company's financial difficulties. Therefore, understanding how cross default works is essential for both borrowers and lenders alike.From a legal perspective, cross default clauses are typically included in loan agreements and bond indentures. These clauses outline the specific conditions under which a default will trigger a cross default scenario. For example, a company might agree that if it fails to make a payment on its senior debt, all other debts, including subordinated debt and lines of credit, will become immediately due. This creates a sense of urgency for the borrower to maintain timely payments across all obligations.On the other hand, while cross default provisions protect lenders, they can also create challenges for borrowers. If a company finds itself in a temporary cash flow crisis but has a cross default clause in place, it may face a cascading effect of defaults that could lead to bankruptcy. This reality underscores the importance of financial management and planning. Companies must be vigilant in monitoring their cash flow and ensuring they can meet all obligations to avoid triggering a cross default situation.In conclusion, cross default is a critical concept in finance that highlights the interconnectedness of financial obligations. For lenders, it provides a layer of security, while for borrowers, it serves as a reminder of the importance of maintaining good financial practices. Understanding cross default is vital for anyone involved in lending or borrowing, as it can have far-reaching consequences on financial stability and creditworthiness. As businesses navigate the complexities of financing, awareness of cross default can help them make informed decisions and mitigate risks effectively.

在金融和商业的世界中，术语cross default指的是一种情况，即在一笔贷款或财务义务上违约会触发其他贷款或义务的违约。这个概念在公司融资和债券协议的背景下尤其相关。当公司借款时，通常是在与多个贷方的不同协议下进行。如果公司未能履行一项协议下的义务，例如错过了预定的付款，cross default条款允许贷方立即宣布所有其他债务到期。这种机制为贷方提供了一种保护措施，确保如果借款人难以满足一项义务，他们很可能在其他方面也面临违约的风险。理解cross default对投资者和债权人至关重要，因为它可以显著影响他们的风险评估和投资策略。例如，如果一家公司有多笔贷款，并且其中一笔贷款包含cross default条款，则任何单一贷款的违约都可能危及公司的整个财务结构。这种相互关联性意味着贷方必须在扩展信用之前仔细评估借款人的整体财务健康状况。此外，cross default的影响不仅限于直接的财务后果。它还可能影响公司的信用评级，使未来借款变得更加困难和昂贵。较低的信用评级可能导致新贷款的利率上升，从而进一步加剧公司的财务困难。因此，了解cross default的运作方式对借款人和贷方来说都是至关重要的。从法律角度来看，cross default条款通常包含在贷款协议和债券契约中。这些条款概述了在何种特定条件下违约将触发cross default情景。例如，一家公司可能同意，如果未能按时偿还其高级债务，则所有其他债务，包括次级债务和信用额度，都将立即到期。这为借款人创造了一种紧迫感，以保持所有义务的及时支付。另一方面，尽管cross default条款保护了贷方，但它们也可能给借款人带来挑战。如果一家公司发现自己处于暂时的现金流危机中，但又有cross default条款在身，那么它可能面临一系列的违约，可能导致破产。这一现实凸显了财务管理和规划的重要性。公司必须密切关注其现金流，并确保能够满足所有义务，以避免触发cross default的情况。总之，cross default是金融中的一个关键概念，突显了财务义务之间的相互关联性。对于贷方而言，它提供了一层安全保障，而对于借款人而言，它则提醒他们保持良好财务实践的重要性。理解cross default对于任何参与借贷的人来说都是至关重要的，因为它可能对财务稳定性和信用worthiness产生深远的影响。随着企业在融资的复杂性中航行，意识到cross default可以帮助他们做出明智的决策，有效地降低风险。