83,357
edits
Template:M intro isda ISDA purpose: Difference between revisions
→Credit risk management
Amwelladmin (talk | contribs) Tags: Mobile edit Mobile web edit |
Amwelladmin (talk | contribs) Tags: Mobile edit Mobile web edit |
||
| Line 26: | Line 26: | ||
If the parties do decide to dance they execute a {{isdaprov|Confirmation}}, under the auspices of the Master Agreement that inherits its terms and sets out the economic terms of the {{isdaprov|Transaction}}. | If the parties do decide to dance they execute a {{isdaprov|Confirmation}}, under the auspices of the Master Agreement that inherits its terms and sets out the economic terms of the {{isdaprov|Transaction}}. | ||
==== Credit risk management==== | ===== Credit risk management===== | ||
Secondly, once the parties ''have'' decided to dance, the ISDA is a [[Credit risk management|credit management]] tool. It gives each party the rights it needs to manage and reduce its [[credit exposure]] to ''the other party'' as a result of all this derivatives trading. These include {{isdaprov|Credit Support}} and [[Close-out Amount - ISDA Provision|Close-out]] rights. | Secondly, once the parties ''have'' decided to dance, the ISDA is a [[Credit risk management|credit management]] tool. It gives each party the rights it needs to manage and reduce its [[credit exposure]] to ''the other party'' as a result of all this derivatives trading. These include {{isdaprov|Credit Support}} and [[Close-out Amount - ISDA Provision|Close-out]] rights. | ||