Credit crunch and Credit support annex: Difference between pages
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(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 == | == See also == | ||
* [[ | * [[Collateral]] | ||
* [[Credit]] | * [[Credit]] | ||
* [[ | * [[Credit support]] | ||
* [[ | * [[Derivative instrument]] | ||
* [[International Swaps and Derivatives Association]] | |||
* [[ISDA Master Agreement]] | |||
* [[Out of the money]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:The_business_context]] | [[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.
