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| {{csasnap|3(c)}}
| | #redirect[[Transfers, Calculations and Exchanges - CSA Provision]] |
| ====Commentary====
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| Note here the {{csaprov|Transferor}} can ask for an exchange, but the {{csaprov|Transferee}} is not obliged to accept it. This is a fundamental provision of "title transfer" - once the {{csaprov|Eligible Credit Support}} is delivered under a {{1995csa}}, it is owned absolutely by the {{csaprov|Transferee}}, subject only to an obligation to return {{csaprov|Equivalent Credit Support}}.
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| This is important also from a pricing (and operational) perspective: otherwise the {{csaprov|Transferor}} would have a "worst-of" option and would be entitled to continually swtich into the "cheapest to deliver" of the Eligible Credit Support. Needless to say the increased collateral flows would also increase the operational burden.
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| '''{{csaprov|Delivery Amount}}s''': Contrast this with {{csaprov|Delivery Amounts}}, where a {{csaprov|Transferor}} has the option to deliver the cheapest of the {{csaprov|Eligible Credit Support}} specified in the {{1995csa}}.
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| '''Return Amounts: A {{csaprov|Transferee}} does have a (limited) option in terms of selecting the Return Amount should there be a requirement to return posted credit support - it can select the cheapest to deliver of all the {{csaprov|Eligible Credit Support}} that has been posted to it which currently comprises its {{csaprov|Credit Support Balance}}.
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| {{csaanatomy}}
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Latest revision as of 18:32, 5 May 2024