Template:M comp disc GMSLA 1: Difference between revisions

Sure, it is preliminary, preamble stuff, but this goes to the core of what is so ''structurally'' different — economically, they’re meant to be as near as dammit the same — about the {{pgmsla}} when compared with the {{gmsla}}. The {{Gmsla}} is a two-way title transfer agreement, where credit risk mitigation functions by offset, leaving the person who has transferred the greater value of assets (usually, ironically, the Borrower) with residual credit exposure, for the difference, to the one who has transferred the lower value. The {{pgmsla}} is a conventional secured Loan, where the Lender has credit exposure to the Borrower for the total value of the Loaned Securities, but this is collateralised by a pledge over {{gmslaprov|Collateral}} to which the {{gmslaprov|Borrower}} retains legal title.