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Set-off: Difference between revisions
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[[Net-net]], there are three concepts to bear in mind: [[close-out netting]], [[settlement netting]], and [[set-off]]. Related, but different things. | [[Net-net]], there are three concepts to bear in mind: [[close-out netting]], [[settlement netting]], and [[set-off]]. Related, but different things. | ||
===Set-off=== | |||
Outside the context of [[settlement netting]] (where on a given day I owe you a sum, you owe me a sum, and we agree to settle by one of us paying the other the difference) [[set-off]] is a drastic remedy which will be seen as enemy action. You would not do it, without agreement, to any client you expected to keep. So, generally, as a remedy it only arises following an [[event of default]]. See, for example, {{isdaprov|Set-off}} in the {{2002ma}} under Section {{isdaprov|6(f)}}. | |||
You may have come to the set-off page, but chances are, you're really interested in {{tag|Netting}}. | You may have come to the set-off page, but chances are, you're really interested in {{tag|Netting}}. | ||
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{{assignment and set off}} | {{assignment and set off}} | ||
{{seealso}} | {{seealso}} | ||
For setting off of exposures under a master agreement versus other general exposures against the counterparty, see: | |||
*{{isdaprov|Set-off}} ({{isda}}) | |||
*{{gmslaprov|Set-off}} ({{gmsla}}) | |||
*There is no general right of set-off in a {{gmra}} | |||
*For the [[net-net]] valuation technique, go read [https://www.amazon.co.uk/d/cka/Security-Analysis-Sixth-Foreword-Warren-Buffett-Editions/0071592539 Graham on ''Security Analysis''], and in no other circumstances utter [[net-net|that expression]]. | |||
*[[Netting]] | *[[Netting]] | ||
{{ref}} | {{ref}} | ||