Template:Deliveryandreturnamounts: Difference between revisions

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===Calculating {{csaprov|Delivery Amount}}s and {{csaprov|Return Amount}}s===
===Calculating {{{{{1}}}prov|Delivery Amount}}s and {{{{{1}}}prov|Return Amount}}s===
====Delivery Amounts====
====Differences between {{csa}} and {{vmcsa}}====
'''First''': work out your '''{{csaprov|Credit Support Amount}}'''. This is: <br>
Note that under a {{vmcsa}} there is no {{csaprov|Independent Amount}} or {{csaprov|Threshold}}, so there is no need for a {{csaprov|Credit Support Amount}} (which is {{csaprov|Exposure}} adjusted by applicable {{csaprov|Independent Amount}}s and {{csaprov|Threshold}}s) — everything keys off the plain old {{vmcsaprov|Exposure}}.  
''{{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>
'''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}}.
'''Fourth''': If the difference:
*is less than zero, KEEP QUIET. If you are lucky, the other guy won’t ask you for a {{csaprov|Return Amount}}.
*it is more than zero but less than the {{csaprov|Minimum Transfer Amount}}, also KEEP QUIET. No {{csaprov|Delivery Amount}} for you today.
*it is more than the {{csaprov|Minimum Transfer Amount}} you can demand the whole amount.
===={{csaprov|Return Amount}}====
Basically the converse of a {{csaprov|Delivery Amount}}. In this case you deduct the {{csaprov|Credit Support Amount}} from the {{csaprov|Credit Support Balance}}.  


''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>
Unless, that is, you have retrofitted your {{vmcsa}} to include {{vmcsaprov|Independent Amount}}s. The below assumes you ''have'' done that. Because some genius in your [[credit department]] will have decided this is really important. If you ''haven’t'', it is a bit easier: just substitute “{{csaprov|Credit Support Amount}}” for “{{vmcsaprov|Exposure}}”. For more on this stimulating topic, see {{vmcsaprov|Credit Support Amount (VM/IA)}}.
===={{{{{1}}}prov|Delivery Amount}}s====
'''First''': work out your '''{{{{{1}}}prov|Credit Support Amount}}'''. This is: <br>
:''{{{{{1}}}prov|Transferee}}’s {{{{{1}}}prov|Exposure}} + Net {{{{{1}}}prov|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 {{2016csa}} with a an {{vmcsaprov|Independent Amount}} section</ref>'' <br>
'''Second''': calculate the {{{{{1}}}prov|Value}} of the {{{{{1}}}prov|Transferor}}’s {{{{{1}}}prov|Credit Support Balance}}. This is basically the prevailing value of the {{{{{1}}}prov|Eligible Credit Support}} (and income on it) that the {{{{{1}}}prov|Transferor}} has ponied up at that time. <br>
'''Third''': Deduct the {{{{{1}}}prov|Credit Support Balance}} from the {{{{{1}}}prov|Credit Support Amount}}.
'''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 {{{{{1}}}prov|Return Amount}}.
:is ''more'' than zero but ''less'' than the {{{{{1}}}prov|Minimum Transfer Amount}}, also KEEP QUIET. No {{{{{1}}}prov|Delivery Amount}} for you today, because you haven’t exceeded the {{{{{1}}}prov|Minimum Transfer Amount}}, so you are not entitled to one.
:is ''more'' than the {{{{{1}}}prov|Minimum Transfer Amount}} you can demand the ''whole'' amount (I.e., not just the bit over the {{{{{1}}}prov|MTA}}).
===={{{{{1}}}prov|Return Amount}}s====
Basically the converse of a {{{{{1}}}prov|Delivery Amount}}. In this case you deduct the {{{{{1}}}prov|Credit Support Amount}} from the {{{{{1}}}prov|Credit Support Balance}}.
{{in-flight credit support|{{{1}}}}}
 
====Picturesque speech====
''Bonus learning for free: In arithmetic, a sum being ''subtracted'' is the [[subtrahend]]and the sum it is being subtracted from is the [[minuend]].'' <br>