Equivalent Credit Support - CSA Provision: Difference between revisions

Equivalent Credit Support - CSA Provision (view source)

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 {{fullanat2|csa|Equivalent Credit Support|1995|Equivalent Credit Support (VM)|2016}}
+'''{{t|Tricks for young players}}''': “{{csaprov|Equivalent Credit Support}}” is meant only to capture assets which are [[fungible]] with assets forming part of posted {{csaprov|Credit Support Balance}} (exactly the same ISIN) – the point of “equivalence” is to buttress the {{csa}}’s [[title transfer]] analysis by allowing return of a security which isn’t the exact security that was delivered in the first place, but another one from the same issue.
-====Commentary====
-'''Tricks for the young players''': “{{csaprov|Equivalent Credit Support}}” is meant only to capture assets which are [[fungible]] with assets forming part of posted {{csaprov|Credit Support Balance}} (exactly the same ISIN) – the point of “equivalence” is to buttress the {{csa}}’s [[title transfer]] analysis by allowing return of a security which isn’t the exact security that was delivered in the first place, but another one from the same issue.
 If you had to redeliver the same one, the “transfer of title” is in danger of being [[recharacterised]] into a [[pledge]]/[[loan]], which has a bunch of unwanted knock-on effects.