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| {{gmslasnap|5.4}} | | {{manual|MSG|2010|5.4|Section|5.3|medium}} |
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| ====Commentary====
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| This provision covers the determination of the amount of {{gmslaprov|Collateral}} required - the {{gmslaprov|Required Collateral Value}} - where {{gmslaprov|Loan}} exposures are determined on an aggregated basis.
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| Interestingly, a failure to deliver {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} during the life of the transaction under this provision (as opposed to on termination of a Loan) is not captured by the {{gmslaprov|mini close-out}} mechanism under {{gmslaprov|9.1}} and {{gmslaprov|9.2}}. One might mount an argument to say that it should be.
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| The {{gmsla}} allows you to specify that {{gmslaprov|Collateral}} managed on an aggregate basis, under this Clause, or on a loan-by-loan basis under Clause {{gmslaprov|5.5}}. Generally speaking it is easier (and in a [[close out]] situation against a non-[[netting]] countertparty, more [[capital]] effective) to collateralise on an aggregate basis under this Clause so this will be the strong preference for most counterparties except in fairly unusual or bespoke situations.
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| {{nuts|GMSLA|5.4}}:
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| ====See Also====
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| {{gmslaanatomy}}
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