Credit support annex: Difference between revisions
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* [[Collateral]] | * [[Collateral]] | ||
* [[International Swaps and Derivatives Association]] | * [[International Swaps and Derivatives Association]] | ||
* [[ISDA Master Agreement]] | |||
* [[Out of the money]] | * [[Out of the money]] | ||
Revision as of 14:58, 14 August 2016
(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.
