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Template:Csa IA Threshold MTA summ: Difference between revisions
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Okay. Now in a CSA, beyond your basic Exposure and how much {{{{{1}}}|Credit Support}} you have already posted, there are three levers determining what you will have to post, or may call, in the future. These are: | Okay. Now in a CSA, beyond your basic Exposure and how much {{{{{1}}}|Credit Support}} you have already posted, there are three levers determining what you will have to post, or may call, in the future. These are: | ||
{{L1}}'''{{{{{1}}}|Independent Amount}}''' or “'''{{{{{1}}}|IA}}'''”: How much do you have to leave with the other guy, over and above your mark-to-market {{{{{1}}}|Exposure}}, to make things nice. <li> | {{L1}}'''{{{{{1}}}|Independent Amount}}''' or “'''{{{{{1}}}|IA}}'''”: How much do you have to leave with the other guy, over and above your mark-to-market {{{{{1}}}|Exposure}}, to make things nice. There isn’t an {{{{{1}}}|Independent Amount}} in a [[Modern CSA|modern variation margin CSA]] for reasons canvassed in the {{premium}}.<li> | ||
'''{{{{{1}}}|Threshold}}''': Is there any lower limit of {{{{{1}}}|Exposure}} that you might have to wait for before being able to call, or be obliged to post, variation margin. <li> | '''{{{{{1}}}|Threshold}}''': Is there any lower limit of {{{{{1}}}|Exposure}} that you might have to wait for before being able to call, or be obliged to post, variation margin. <li> | ||
'''{{{{{1}}}|Minimum Transfer Amount}}''' or “'''{{{{{1}}}|MTA}}'''”: Assuming you are over your {{{{{1}}}|Threshold}}, is there a “smallest integral amount” of incremental {{{{{1}}}|Exposure}} that must arisen before a posting obligation arises and anyone has to go to the trouble of paying out?</ol> | '''{{{{{1}}}|Minimum Transfer Amount}}''' or “'''{{{{{1}}}|MTA}}'''”: Assuming you are over your {{{{{1}}}|Threshold}}, is there a “smallest integral amount” of incremental {{{{{1}}}|Exposure}} that must arisen before a posting obligation arises and anyone has to go to the trouble of paying out?</ol> | ||