Credit support annex: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Split up long sentence into short ones.) |
imported>Doug Williamson (Add link.) |
||
| (3 intermediate revisions by the same user not shown) | |||
| Line 10: | Line 10: | ||
== See also == | == See also == | ||
* [[Collateral]] | * [[Collateral]] | ||
* [[Credit]] | |||
* [[Credit support]] | |||
* [[Derivative instrument]] | |||
* [[International Swaps and Derivatives Association]] | * [[International Swaps and Derivatives Association]] | ||
* [[ISDA Master Agreement]] | |||
* [[Out of the money]] | * [[Out of the money]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | |||
[[Category:Manage_risks]] | |||
[[Category:Risk_frameworks]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 12:06, 6 July 2022
(CSA).
An agreement designed to reduce counterparty credit risk in derivative transactions.
The CSA requires the "losing" counterparty to post collateral for the amount by which they are currently losing.
Expressed more formally, collateral is posted for the amount by which the related derivative instrument is out of the money for the losing counterparty.
