Template:M summ 1995 CSA Independent Amount: Difference between revisions

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{{initialmargindescription}}
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{{csa credit support amount calculation|csa}}

Revision as of 13:10, 4 June 2020

To be contrasted with variation margin, initial margin (in the ISDA troposphere known as an “Independent Amount”) is the amount of margin you hold in excess of current mark-to-market exposure. You hold it to cover the risk that the market moves suddenly against your counterparty at the same time as it implodes, all before you have a chance to make a further variation margin call.