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Credit risk mitigation: Difference between revisions
→Collateralised transactions
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[[CRM technique]]s are broken down as follows: | [[CRM technique]]s are broken down as follows: | ||
*'''[[Title transfer collateral arrangement|Collateralised transactions]]''': A bank has a [[credit exposure]] which it hedges<ref>This is what it says, and I suppose it is true, even though this is a curious way of describing it</ref> [[in whole or in part]] by {{csaprov|collateral}} posted by a counterparty or a [[credit support provider]]. | |||
A bank has a [[credit exposure]] which it hedges<ref>This is what it says, and I suppose it is true, even though this is a curious way of describing it</ref> [[in whole or in part]] by {{csaprov|collateral}} posted by a counterparty or a [[credit support provider]]. | |||
====On-[[balance sheet]] {{tag|netting}}==== | ====On-[[balance sheet]] {{tag|netting}}==== | ||
legally enforceable [[close-out netting]] arrangements covering multiple transactions with offsetting [[mark-to-market]] values | legally enforceable [[close-out netting]] arrangements covering multiple transactions with offsetting [[mark-to-market]] values | ||