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Template:Deliveryandreturnamounts: Difference between revisions
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===Calculating {{csaprov|Delivery Amount}}s and {{csaprov|Return Amount}}s=== | ===Calculating {{csaprov|Delivery Amount}}s and {{csaprov|Return Amount}}s=== | ||
====Delivery | ===={{csaprov|Delivery Amount}}s==== | ||
# '''First''': work out your '''{{csaprov|Credit Support Amount}}'''. This is: <br> | # '''First''': work out your '''{{csaprov|Credit Support Amount}}'''. This is: <br> | ||
:''{{csaprov|Transferee}}’s {{csaprov|Exposure}} + Net {{csaprov|Independent Amount}}s (IF ANY)<ref>In the {{2016csa}} there really shouldn't be {{tag|IA}} as it kind of defeats the regulatory goal of marking actual exposures to market, but there may be, since ISDA caved and retrofitted the CSA with a an Independent Amount section</ref>'' <br> | :''{{csaprov|Transferee}}’s {{csaprov|Exposure}} + Net {{csaprov|Independent Amount}}s (IF ANY)<ref>In the {{2016csa}} there really shouldn't be {{tag|IA}} as it kind of defeats the regulatory goal of marking actual exposures to market, but there may be, since ISDA caved and retrofitted the CSA with a an {{csaprov|Independent Amount}} section</ref>'' <br> | ||
# '''Second''': calculate the {{csaprov|Value}} of the {{csaprov|Transferor}}’s {{csaprov|Credit Support Balance}}. This is basically the prevailing value of the {{csaprov|Eligible Credit Support}} (and income on it) that the {{csaprov|Transferor}} has ponied up at that time. <br> | # '''Second''': calculate the {{csaprov|Value}} of the {{csaprov|Transferor}}’s {{csaprov|Credit Support Balance}}. This is basically the prevailing value of the {{csaprov|Eligible Credit Support}} (and income on it) that the {{csaprov|Transferor}} has ponied up at that time. <br> | ||
# '''Third''': Deduct the {{csaprov|Credit Support Balance}} from the {{csaprov|Credit Support Amount}}. | # '''Third''': Deduct the {{csaprov|Credit Support Balance}} from the {{csaprov|Credit Support Amount}}. | ||
# '''Fourth''': If the difference from the sum you did in (3): | # '''Fourth''': If the difference from the sum you did in (3): | ||
##is ''less'' than zero, KEEP QUIET. If you are lucky, the other guy won’t ask you for a {{csaprov|Return Amount}}. | ##is ''less'' than zero, KEEP QUIET. If you are lucky, the other guy won’t ask ''you'' for a {{csaprov|Return Amount}}. | ||
##is ''more'' than zero but ''less'' than the {{csaprov|Minimum Transfer Amount}}, also KEEP QUIET. No {{csaprov|Delivery Amount}} for you today. | ##is ''more'' than zero but ''less'' than the {{csaprov|Minimum Transfer Amount}}, also KEEP QUIET. No {{csaprov|Delivery Amount}} for you today, because you haven’t exceeded the {{csaprov|Minimum Transfer Amount}}, so you are not entitled to one. | ||
##is ''more'' than the {{csaprov|Minimum Transfer Amount}} you can demand the whole amount (I.e., not just the bit over the {{csaprov|MTA}}). | ##is ''more'' than the {{csaprov|Minimum Transfer Amount}} you can demand the ''whole'' amount (I.e., not just the bit over the {{csaprov|MTA}}). | ||
===={{csaprov|Return Amount}}==== | ===={{csaprov|Return Amount}}==== | ||
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====Picturesque speech==== | ====Picturesque speech==== | ||
''Bonus learning for free: In a subtraction, the sum being subtracted is the [[subtrahend]] and the sum it is being subtracted from is the [[minuend]].'' <br> | ''Bonus learning for free: In a subtraction, the sum being subtracted is the “[[subtrahend]]” and the sum it is being subtracted from is the “[[minuend]]”.'' <br> | ||