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Pledge GMSLA Anatomy: Difference between revisions
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===(Agent) {{pgmslaprov|Lender}}s who might like to use the Pledge GMSLA=== | ===(Agent) {{pgmslaprov|Lender}}s who might like to use the Pledge GMSLA=== | ||
A pledge GMSLA would be useful and interesting in the following circumstances: | A pledge GMSLA would be useful and interesting in the following circumstances: | ||
*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]] | ||
*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 onlly 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 pledged, so that should the {{pgmslaprov|Borrower}} default, the lender has recourse to the collateral. | *'''''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 onlly 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 pledged, 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). | ||