Credit support annex

(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.

See also

• Collateral
• International Swaps and Derivatives Association
• Out of the money