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Template:M summ 2016 NY VM CSA Obligations: Difference between revisions
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Template:M summ 2016 NY VM CSA Obligations (view source)
Revision as of 15:41, 7 February 2022
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Amwelladmin (talk | contribs) (Created page with "Should you want your variation margin CSA to act as security for other obligations your counterparty may owe you, outside the terms of the ISDA, then here is where you make th...") |
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Should you want your variation margin CSA to act as security for other obligations your counterparty may owe you, outside the terms of the ISDA, then here is where you make that quixotic quest. | [[Obligations - NY VM CSA Provision|Should]] you want your variation margin CSA to act as security for other obligations your counterparty may owe you, outside the terms of the ISDA, then here is where you make that quixotic quest. | ||
Quixotic ''why''? Because [[variation margin]] is calculated — ''literally'' calculated, that is, not just forensically [[calculated]] —to have a value ''exactly equal'' to your counterparty’s net [[mark-to-market]] liability to you under the contract, so in the ordinary course, there will be more or less none of it left by the time it comes to recovering other debts owed by the same bankrupted counterparty. | Quixotic ''why''? Because [[variation margin]] is calculated — ''literally'' calculated, that is, not just forensically [[calculated]] —to have a value ''exactly equal'' to your counterparty’s net [[mark-to-market]] liability to you under the contract, so in the ordinary course, there will be more or less none of it left by the time it comes to recovering other debts owed by the same bankrupted counterparty. | ||