Market Insights Report: Failure-to-Pay Grace Periods

The market standard for failure-to-pay grace periods has changed significantly over time. But not every contract has moved with it.

Drawing on analysis of thousands of Global Markets trading agreements, Likezero’s latest Market Insights report explores how failure-to-pay grace periods have evolved, the impact of major market and regulatory events, and where legacy positions remain embedded across agreement portfolios.

Today, one-day grace periods dominate the market, yet a significant proportion of agreements continue to operate on historic three-day provisions. Understanding where these positions sit within a portfolio, and whether they still reflect an institution’s current appetite for counterparty risk, is becoming increasingly important.

Download the report to discover: 

• How failure-to-pay grace periods have shifted from three days to one.

• The market and regulatory events that appear to have accelerated that transition.

• Where the market stands today and how prevalent legacy positions remain.

• What the data reveals about outliers and deviations from current market practice.

• How portfolio-level agreement intelligence can help firms identify, benchmark and act on contractual risk.

How does your portfolio compare?