Template:Other CSA commentary: Difference between revisions
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===But what does it mean?=== | ===But what does it mean?=== | ||
This | This “{{csaprov|Other CSA}}” talk has in mind those who, in 2016, wished to “[[grandfather]]” {{isdaprov|Transaction}}s which were already live when the [[regulatory margin]] obligations came into force, but which therefore preceded it and were out of scope for it. | ||
No doubt this made sound commercial sense in | Cue a monstrously painful ''dual''-CSA regime where new transactions were margined under a new, [[regulatory margin]]-compliant {{2016csa}}, and old ones were allowed to roll off on the clapped-out (but somehow ''better'', right?) “other” {{1995csa}}. | ||
No doubt this made sound commercial sense in 2016. But a few years later, for all except those with 30-year inflation swaps on the books, all this “{{csaprov|Other CSA}}” chat is just [[barnacle]]-encrusted confusion for everyone. <br> | |||
Latest revision as of 03:12, 31 December 2019
But what does it mean?
This “Other CSA” talk has in mind those who, in 2016, wished to “grandfather” Transactions which were already live when the regulatory margin obligations came into force, but which therefore preceded it and were out of scope for it.
Cue a monstrously painful dual-CSA regime where new transactions were margined under a new, regulatory margin-compliant 2016 VM CSA, and old ones were allowed to roll off on the clapped-out (but somehow better, right?) “other” 1995 CSA.
No doubt this made sound commercial sense in 2016. But a few years later, for all except those with 30-year inflation swaps on the books, all this “Other CSA” chat is just barnacle-encrusted confusion for everyone.