Credit Support Amount - CSA Provision

CSA Anatomy™ →Go uptown “Credit Support Amount” means, with respect to a Transferor on a Valuation Date, (i) the Transferee’s Exposure plus (ii) all Independent Amounts applicable to the Transferor, if any, minus (iii) all Independent Amounts applicable to the Transferee, if any, minus (iv) the Transferor’s Threshold; provided, however, that the Credit Support Amount will be deemed to be zero whenever the calculation of Credit Support Amount yields a number less than zero. (View Template) “Credit Support Amount (VM/IA)” means with respect to a Transferor on a Valuation Date: (I) the Transferee’s Exposure plus (II) all Independent Amounts applicable to the Transferor, if any, minus (III) all Independent Amounts applicable to the Transferee, if any, provided however, that the Credit Support Amount (VM/IA) will be deemed to be zero whenever the calculation of Credit Support Amount (VM/IA) yields a number less than zero. (View Template) Resources Full wikitext | Nutshell wikitext English Law | 1 Interpretation | 2 Credit Support Obligations | 3 Transfers, Calculations and Exchanges | 4 Dispute Resolution | 5 Transfer of Title, No Security Interest, Distributions and Interest Amount | 6 Default | 7 Representation | 8 Expenses | 9 Miscellaneous | 10 Definitions | 11 Elections and Variables · Base Currency and Eligible Currency · Credit Support Obligations · Valuation and Timing · Exchange Date · Dispute Resolution · Distributions and Interest Amount · Addresses for Transfers · Credit Support Offsets · Other CSA 2018 ISDA Credit Support Deed for Initial Margin Index: Click ᐅ to expand: CSA Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

Commentary

This is the total amount required to be posted by a counterparty on any day - the combination of its net exposure under the ISDA Master Agreement and the net amount of Independent Amounts it is required to post.

Careful observers will have noticed there isn't such a concept in the 2016 VM CSA. This is because the Credit Support Amount is no more than a given party’s Exposure — as already defined in the CSA — together with any pertinent Independent Amounts and similar amounts. Of course, under the 2016 VM CSA (being concerned only with Variation Margin) there are no Independent Amounts. So it vanishes, in a puff of logic and existential redundancy.

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