Template:M summ 2018 CSD Posted Credit Support (IM): Difference between revisions

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(Created page with "An interesting comparison between {{imcsdprov|Credit Support Amount (IM)}} and {{imcsdprov|Posted Credit Support (IM)}}. The first is the amount you are ''obliged'' at any poi...")
 
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An interesting comparison between {{imcsdprov|Credit Support Amount (IM)}} and {{imcsdprov|Posted Credit Support (IM)}}. The first is the amount you are ''obliged'' at any point to have posted to the {{imcsdprov|Custodian (IM)}}; the latter is the amount you ''actually have'' posted at any time. The two might be different, without any suggestion of a default: There might be a pending but not yet due margin call; you might be owed some Margin Amount (IM) back, but not yet received it.
===[[Posted Credit Support (IM) - IM CSD Provision|What]] does it cover?===
It covers all assets you have delivered to the {{imcsdprov|Custodian (IM)}} in satisfaction of your Credit Support Amount (IM) which, in turn depends on your {{imcsdprov|Margin Approach}}.


Interesting is their interaction with the obligation due under the {{imcsdprov|Other CSA}} for Margin Amount (IA), especially if you are using the Allocated Margin (IA/IM) Approach.
If you have elected “[[Allocated Margin Flow (IM/IA) Approach - IM CSD Provision|Allocated Margin Flow]]” or “[[Distinct Margin Flow (IM) Approach - IM CSD Provision|Distinct Margin Flow]]”, then it will be just the {{imcsdprov|Margin Amount (IM)}} - {{imcsdprov|Threshold (IM)}}.
 
If you are one of those big swinging kahunas who can kick your [[prime broker]] around and you have negotiated “[[Greater of Margin Flow (IM/IA) Approach - IM CSD Provision|Greater Of]]”, it will be the whole shooting match: {{imcsdprov|Margin Amount (IA)}} as well.
 
{{posted credit support vs credit support amount}}

Revision as of 17:37, 28 April 2021

What does it cover?

It covers all assets you have delivered to the Custodian (IM) in satisfaction of your Credit Support Amount (IM) which, in turn depends on your Margin Approach.

If you have elected “Allocated Margin Flow” or “Distinct Margin Flow”, then it will be just the Margin Amount (IM) - Threshold (IM).

If you are one of those big swinging kahunas who can kick your prime broker around and you have negotiated “Greater Of”, it will be the whole shooting match: Margin Amount (IA) as well.

Template:Posted credit support vs credit support amount

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