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Template:Csa Interest Period comp: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "Some development from the {{csaprov|OG}} to the {{2016csa}} that came about when {{icds}}, bless them, contrived in Para {{vmcsaprov|5(c)(ii)}} to design an option no-one in their right mind would have wanted, namely to choose between {{vmcsaprov|Interest Transfer}} — in which you can have interest that accrues on your Credit Support Balances periodically paid to you — or {{vmcsaprov|Interest Amount}}, in which interest accruals are added to the {{vmcsaprov|Credit Su...") |
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Some development from the {{csaprov|OG}} to the {{2016csa}} that came about when {{icds}}, bless them, contrived in Para {{vmcsaprov|5(c)(ii)}} to design an option no-one in their right mind would have wanted, namely to choose between {{vmcsaprov|Interest Transfer}} — in which you can have interest that accrues on your Credit Support Balances periodically paid to you — or {{vmcsaprov|Interest Amount}}, in which interest accruals are added to the {{vmcsaprov|Credit Support Balance}}, effectively folding all that into the weft and warp of daily transfers that you will be making anyway. | Some development from the {{csaprov|OG}} to the {{2016csa}} that came about when {{icds}}, bless them, contrived in Para {{vmcsaprov|5(c)(ii)}} to design an option no-one in their right mind would have wanted, namely to choose between {{vmcsaprov|Interest Transfer}} — in which you can have interest that accrues on your Credit Support Balances periodically paid to you — or {{vmcsaprov|Interest Amount}}, in which interest accruals are added to the {{vmcsaprov|Credit Support Balance}}, effectively folding all that into the weft and warp of daily transfers that you will be making anyway. | ||
To be fair to them, the OG only contemplated transfer of accrued interest, which in the context of a modern, daily margined swap business, is barking mad, so at least having the option to just capitalise interest is better than not having it. | |||
But better still would be just straight out capitalising interest, with no option to transfer it. Perhaps this is just me. | |||