82,891
edits
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
Line 18: | Line 18: | ||
A pledge GMSLA would be useful and interesting in the following circumstances: | A pledge GMSLA would be useful and interesting in the following circumstances: | ||
*'''FI Borrower''': Where the {{pgmslaprov|Borrower}} is a [[bank]] or [[financial institution]] that would incur a capital/balance sheet charge under [[Basel III|Basel]] rules for the return of excess collateral it has provided by [[title transfer]] | *'''FI Borrower''': Where the {{pgmslaprov|Borrower}} is a [[bank]] or [[financial institution]] that would incur a capital/balance sheet charge under [[Basel III|Basel]] rules for the return of excess collateral it has provided by [[title transfer]] | ||
*'''''Non''-FI Lender''' Where the {{pgmslaprov|Lender}} is ''not'' a [[financial institution]], but rather is owner of long assets which it is seeking to enhance yield on, where its | *'''''Non''-FI Lender''' Where the {{pgmslaprov|Lender}} is ''not'' a [[financial institution]], but rather is owner of long assets which it is seeking to enhance yield on, where its only concern is [[credit mitigation]] and not funding, and it does not therefore need to [[reuse]] the collateral, being happy for it to be "dead-ended" in a collateral management system, as long as it is properly— ahh, ''[[perfect]]ly'' — [[pledge]]d, so that should the {{pgmslaprov|Borrower}} default, the lender has recourse to the collateral. | ||
In other words this is likely to be restricted to [[agent lender]]s and quasi-agent lenders ([[Luxembourg fiduciary|fiduciaries]], [[Espievie|espievies]], [[Repackaging programme|repackaging]] vehicles). | In other words this is likely to be restricted to [[agent lender]]s and quasi-agent lenders ([[Luxembourg fiduciary|fiduciaries]], [[Espievie|espievies]], [[Repackaging programme|repackaging]] vehicles). |