Valuation Percentage - CSA Provision: Difference between revisions

Valuation Percentage - CSA Provision (view source)

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	{{csaanat\|Valuation Percentage\|1995}}		{{csaanat\|Valuation Percentage\|1995}}
	To be differentiated from an {{csaprov\|Independent Amount}}, the {{csaprov\|Valuation Percentage}} is the [[haircut]] applied to the valuation of any assets posted as {{csaprov\|~~Collateral~~}} under a {{csa}}. So it is a ''deduction'' in the value of credit support provided, whereas an {{csaprov\|Independent Amount}} is an ''addition'' to the [[mark-to-market]] exposure under a {{isdaprov\|Transaction}}.		To be differentiated from an {{csaprov\|Independent Amount}}, the {{csaprov\|Valuation Percentage}} is the [[haircut]] applied to the valuation of any assets posted as {{csaprov\|Credit Support}} under a {{csa}}. So it is a ''deduction'' in the value of credit support provided, whereas an {{csaprov\|Independent Amount}} is an ''addition'' to the [[mark-to-market]] exposure under a {{isdaprov\|Transaction}}.