Template:Csa Delivery Amount comp: Difference between revisions

Latest revision as of 11:35, 13 May 2024

Now the interesting thing here is the difference that pledged collateral under the New York law versions of the CSA makes over title-transferred collateral regime of the English law versions. You will see the difference in the NY law version’s {{{{{1}}}|Delivery Amount}}, which is the positive difference between Secured Party’s {{{{{1}}}|Exposure}} and the value of Posted Credit Support held by the Secured Party — easy, right? — and the equivalent provision in the English law versions which is the positive difference between the {{{{{1}}}|Transferee}}’s {{{{{1}}}|Exposure}} and the {{{{{1}}}|Credit Support}} adjusted to exclude any inflight but unsettled collateral movements.

The English law versions are a bit more leaden in how they describe things but these amount to the same thing: you don’t get any credit (support) for collateral until it has landed with the other party.

This creates some curious scenarios, as you will see.

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-Now the interesting thing here is the difference that ''[[pledge|pledged]]'' collateral under the {{ny{{{1}}}}} makes over ''[[Title transfer|title-transferred]]'' collateral regime of the {{{{{1}}}}}. You will see the difference in the {{nycsa}}’s {{ny{{{1}}}prov|Delivery Amount}}, which is the positive difference between {{ny{{{1}}}prov|Secured Party}}’s {{ny{{{1}}}prov|Exposure}} and the value of {{ny{{{1}}}prov|Posted Credit Support}} ''held by the {{ny{{{1}}}prov|Secured Party}}'' — easy, right? — and {{{{{1}}}}}’s equivalent provision which is the positive difference between the {{{{{1}}}prov|Transferee}}’s {{{{{1}}}prov|Exposure}} and the {{{{{1}}}prov|Credit Support Balance}} ''adjusted to exclude any inflight but unsettled collateral movements''.
+Now the interesting thing here is the difference that ''[[pledge|pledged]]'' collateral under the New York law versions of the CSA makes over ''[[Title transfer|title-transferred]]'' collateral regime of the English law versions. You will see the difference in the NY law version’s {{{{{1}}}|Delivery Amount}}, which is the positive difference between Secured Party’s {{{{{1}}}|Exposure}} and the value of Posted Credit Support ''held by the Secured Party'' — easy, right? — and the equivalent provision in the English law versions which is the positive difference between the {{{{{1}}}|Transferee}}’s {{{{{1}}}|Exposure}} and the {{{{{1}}}|Credit Support}} ''adjusted to exclude any inflight but unsettled collateral movements''.
-The {{{{{1}}}}} is a bit more leaden in how it describes things but these amount to the same thing: you don’t get any credit (support) for collateral ''until it has landed with the other party''. This creates some curious scenarios, as you will see if you read on.
+The English law versions are a bit more leaden in how they describe things but these amount to the same thing: you don’t get any credit (support) for collateral ''until it has landed with the other party''.
+This creates some curious scenarios, as you will see.