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Something for the weekend, sir?: Difference between revisions
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Something for the weekend, sir? (view source)
Revision as of 11:26, 27 November 2021
, 27 November 2021no edit summary
Amwelladmin (talk | contribs) No edit summary Tags: Mobile edit Mobile web edit |
Amwelladmin (talk | contribs) No edit summary Tags: Mobile edit Mobile web edit |
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Variation margin as source of systemic risk. Would it not be better to manage margin exposure by declining to trade? Thanks do not provide margin on the upside, so that puts a natural cap on on clients preparedness to transact. Thanks still call margin on the downside reflecting at this is fundamentally a lending business and the use of bilateral contracts banks role and regulation and capital is the primary systemic risk mitigant. | Variation margin as source of systemic risk. Would it not be better to manage margin exposure by declining to trade? Thanks do not provide margin on the upside, so that puts a natural cap on on clients preparedness to transact. Thanks still call margin on the downside reflecting at this is fundamentally a lending business and the use of bilateral contracts banks role and regulation and capital is the primary systemic risk mitigant. | ||
The interplay with netting being a a giveaway: variation margin + netting = worse xposure | |||
The bilateral nature of ISDA being a great misconception | The bilateral nature of ISDA being a great misconception | ||