Template:M summ 1992 ISDA Settlement Amount: Difference between revisions

{{isda92prov|Settlement Amount}} only applies to {{isda92prov|Transaction}} terminations where {{isda92prov|Market Quotation}} is the nominated valuation methodology. In the astoundingly unlikely circumstances<ref>Not remotely unlikely. Almost certain, in fact.</ref> that there is not a {{isda92prov|Reference Market-maker}} on the Lord’s green planet with the time, risk tolerance or general inclination to give you,  a competitor, a series of firm quotes on your portfolio that she knows you have no interest in actually hitting — let alone ''four'' of the blighters — note that this provision converts {{isda92prov|Market Quotation}} into, for all intents and purposes, {{isda92prov|Loss}}, though — and, viewers, it pains me to have to say this because it is so stupid, but I have to because it is nonetheless true — your measure of Loss is defined to ''include'' {{isda92prov|Unpaid Amounts}}, if you actually elected full-blown {{isda92prov|Loss}} in the {{isda92prov|Schedule}}, but it ''excludes'' {{isda92prov|Unpaid Amounts}} if you elected {{isda92prov|Market Quotation}} but wound up at Loss because you couldn’t get enough quotations Reference Market-makers to make a {{isdaprov|Market Quotation}}.

So if you are a true {{isda92prov|Loss}} person, you don't have to adjust {{isda92prov|Unpaid Amounts}} because they’re embedded in the definition of {{isda92prov|Loss}}, but if you’re a {{isda92prov|Loss}}-via-a-failed-{{isda92prov|Market Quotation}} person, you have to add/subtract {{isdaprov|Unpaid Amounts}} independently.

’But in any case you will wind up at the same number.