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===Calculating {{ | ===Calculating {{{{{1}}}prov|Delivery Amount}}s and {{{{{1}}}prov|Return Amount}}s=== | ||
==== | ====Differences between {{csa}} and {{vmcsa}}==== | ||
Note that under a {{vmcsa}} there is no {{csaprov|Independent Amount}} or {{csaprov|Threshold}}, so there is no need for a {{csaprov|Credit Support Amount}} (which is {{csaprov|Exposure}} adjusted by applicable {{csaprov|Independent Amount}}s and {{csaprov|Threshold}}s) — everything keys off the plain old {{vmcsaprov|Exposure}}. | |||
===={{ | Unless, that is, you have retrofitted your {{vmcsa}} to include {{vmcsaprov|Independent Amount}}s. The below assumes you ''have'' done that. Because some genius in your [[credit department]] will have decided this is really important. If you ''haven’t'', it is a bit easier: just substitute “{{csaprov|Credit Support Amount}}” for “{{vmcsaprov|Exposure}}”. For more on this stimulating topic, see {{vmcsaprov|Credit Support Amount (VM/IA)}}. | ||
===={{{{{1}}}prov|Delivery Amount}}s==== | |||
'''First''': work out your '''{{{{{1}}}prov|Credit Support Amount}}'''. This is: <br> | |||
:''{{{{{1}}}prov|Transferee}}’s {{{{{1}}}prov|Exposure}} + Net {{{{{1}}}prov|Independent Amount}}s (IF ANY)<ref>In the {{2016csa}} there really shouldn’t be {{tag|IA}} as it kind of defeats the regulatory goal of marking actual exposures to market, but there may be, since ISDA caved and retrofitted the {{2016csa}} with a an {{vmcsaprov|Independent Amount}} section</ref>'' <br> | |||
'''Second''': calculate the {{{{{1}}}prov|Value}} of the {{{{{1}}}prov|Transferor}}’s {{{{{1}}}prov|Credit Support Balance}}. This is basically the prevailing value of the {{{{{1}}}prov|Eligible Credit Support}} (and income on it) that the {{{{{1}}}prov|Transferor}} has ponied up at that time. <br> | |||
'''Third''': Deduct the {{{{{1}}}prov|Credit Support Balance}} from the {{{{{1}}}prov|Credit Support Amount}}. | |||
'''Fourth''': If the difference from the sum you did in (3): | |||
:is ''less'' than zero, KEEP QUIET. If you are lucky, the other guy won’t ask ''you'' for a {{{{{1}}}prov|Return Amount}}. | |||
:is ''more'' than zero but ''less'' than the {{{{{1}}}prov|Minimum Transfer Amount}}, also KEEP QUIET. No {{{{{1}}}prov|Delivery Amount}} for you today, because you haven’t exceeded the {{{{{1}}}prov|Minimum Transfer Amount}}, so you are not entitled to one. | |||
:is ''more'' than the {{{{{1}}}prov|Minimum Transfer Amount}} you can demand the ''whole'' amount (I.e., not just the bit over the {{{{{1}}}prov|MTA}}). | |||
===={{{{{1}}}prov|Return Amount}}s==== | |||
Basically the converse of a {{{{{1}}}prov|Delivery Amount}}. In this case you deduct the {{{{{1}}}prov|Credit Support Amount}} from the {{{{{1}}}prov|Credit Support Balance}}. | |||
{{in-flight credit support|{{{1}}}}} | |||
====Picturesque speech==== | ====Picturesque speech==== | ||
''Bonus learning for free: In a | ''Bonus learning for free: In arithmetic, a sum being ''subtracted'' is the “[[subtrahend]]” and the sum it is being subtracted from is the “[[minuend]]”.'' <br> |