Credit support annex: Difference between revisions
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== See also == | == See also == | ||
* [[Collateral]] | * [[Collateral]] | ||
* [[Credit]] | |||
* [[Credit support]] | * [[Credit support]] | ||
* [[Derivative instrument]] | * [[Derivative instrument]] | ||
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.
