Template:Isda Unpaid Amounts summ

If you think of an ISDA Transaction as comprising offsetting payment streams, these payments fall into one of three ontological categories:

• Been and gone: Those that are already paid: settled, gone, checked into the hereafter; on permanent location in that foreign country we call the past — we care less about these; they are but a fossil record: they pose no risk, attract no capital and excite no prospects of revenue or compensation.
• Yet to come: Due to be paid, or delivered, at a specified date in the future. Perhaps fixed; perhaps yet to be determined, but conceptually still out there. It is, conventionally, by off setting the provisional present value of these future cashflows, that we value “the {{{{{1}}}|Transaction}}” — this is what we call its “replacement cost”.
• The twilight zone: That weird inter-regnum of payments whose due date has passed, and which should have have been paid, and thus emigrated permanently to that foreign country but, for whatever reason — inattention, inability, defiance, or the affordances of Section {{{{{1}}}|2(a)(iii)}} — they have not yet been made, so they need to be worried about, accounted for and factored into things, over and above the “replacement” value of the trade.

You may want to know where {{{{{1}}}|Unpaid Amounts}} feature in the ISDA Master Agreement. The answer: In {{{{{1}}}|Payments on Early Termination}}: Section {{{{{1}}}|6(e)(i)}} (for {{{{{1}}}|Events of Default}}) and {{{{{1}}}|6(e)(ii)}} (for {{{{{1}}}|Termination Events}}).

For the old-fashioned lady or gentleman: “Loss” and the Unpaid Amount

Spoddy point for old-fashioned 1992 ISDA hipster types: if “Loss” is your chosen means of close-out valuation, the concept of {{{{{1}}}|Unpaid Amounts}} is more or less factored into the definition of Loss:

Loss includes losses and costs (or gains) in respect of any payment or delivery required to have been made (assuming satisfaction of each applicable condition precedent) on or before the relevant Early Termination Date and not made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies...