Template:Credit support balance commentary: Difference between revisions
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The {{{{{1}}}prov|Credit Support Balance}} is an important part of the recipe when cooking up a {{{{{1}}}prov|Delivery Amount}} | The {{{{{1}}}prov|Credit Support Balance}} is an important part of the recipe when cooking up a {{{{{1}}}prov|Delivery Amount}} or {{{{{1}}}prov|Return Amount}}, because it is essentially the amount of [[credit support]] you have already posted. The transfer will therefore be your {{csaprov|Credit Support Amount}}/{{vmcsaprov|Exposure}} less that sum. | ||
Note that {{{{{1}}}prov|Interest Amount}}s and {{{{{1}}}prov|Distributions}}, so long as they (i) have not yet been returned to the {{{{{1}}}prov|Transferor}} and (ii) themselves count as {{{{{1}}}prov|Eligible Credit Support}}, are included in the {{{{{1}}}prov|Credit Support Balance}}. Needless to say, amounts that are not {{{{{1}}}prov|Eligible Credit Support}} aren't counted towards the {{{{1}}}prov|Credit Support Balance}} but an amount due by {{{{{1}}}prov|Transferee}} to {{{{{1}}}prov|Transferor}} which would b {{isdaprov|Unpaid Amounts}} on an {{isdaprov|Event of Default}} etc, and for which {{{{{1}}}prov|Transferor}} would be an unsecured creditor. | Note that {{{{{1}}}prov|Interest Amount}}s and {{{{{1}}}prov|Distributions}}, so long as they (i) have not yet been returned to the {{{{{1}}}prov|Transferor}} and (ii) themselves count as {{{{{1}}}prov|Eligible Credit Support}}, are included in the {{{{{1}}}prov|Credit Support Balance}}. Needless to say, amounts that are not {{{{{1}}}prov|Eligible Credit Support}} aren't counted towards the {{{{1}}}prov|Credit Support Balance}} but an amount due by {{{{{1}}}prov|Transferee}} to {{{{{1}}}prov|Transferor}} which would b {{isdaprov|Unpaid Amounts}} on an {{isdaprov|Event of Default}} etc, and for which {{{{{1}}}prov|Transferor}} would be an unsecured creditor. | ||
Note, per the definition of {{{{{1}}}prov|Value}}, “items that are comprised in a {{{{{1}}}prov|Credit Support Balance}} and are not {{{{{1}}}prov|Eligible Credit Support}}” are valued at zero. <br> | Note, per the definition of {{{{{1}}}prov|Value}}, “items that are comprised in a {{{{{1}}}prov|Credit Support Balance}} and are not {{{{{1}}}prov|Eligible Credit Support}}” are valued at zero. <br> | ||
Revision as of 22:39, 28 December 2019
The {{{{{1}}}prov|Credit Support Balance}} is an important part of the recipe when cooking up a {{{{{1}}}prov|Delivery Amount}} or {{{{{1}}}prov|Return Amount}}, because it is essentially the amount of credit support you have already posted. The transfer will therefore be your Credit Support Amount/Exposure less that sum.
Note that {{{{{1}}}prov|Interest Amount}}s and {{{{{1}}}prov|Distributions}}, so long as they (i) have not yet been returned to the {{{{{1}}}prov|Transferor}} and (ii) themselves count as {{{{{1}}}prov|Eligible Credit Support}}, are included in the {{{{{1}}}prov|Credit Support Balance}}. Needless to say, amounts that are not {{{{{1}}}prov|Eligible Credit Support}} aren't counted towards the {{{{1}}}prov|Credit Support Balance}} but an amount due by {{{{{1}}}prov|Transferee}} to {{{{{1}}}prov|Transferor}} which would b Unpaid Amounts on an Event of Default etc, and for which {{{{{1}}}prov|Transferor}} would be an unsecured creditor.
Note, per the definition of {{{{{1}}}prov|Value}}, “items that are comprised in a {{{{{1}}}prov|Credit Support Balance}} and are not {{{{{1}}}prov|Eligible Credit Support}}” are valued at zero.