Template:Credit support amount capsule: Difference between revisions

Life is much simpler in the world of regulatory [[variation margin]] for which the {{2016csa}} is designed. Its only concern is  [[variation margin]]. That is, there ''are'' no {{vmcsaprov|Independent Amount}}s.<ref>Well, alright, ''should be'' no {{vmcsaprov|Independent Amount}}s. {{vmcsaprov|Independent Amount}}s are there to protect counterparties against ''potential'' swings in {{vmcsaprov|Exposure}} that might happen before the next margin call: that is, they are a buffer against ''the risk'' of market moves. But a [[title transfer]] of collateral to cover an {{vmcsaprov|Exposure}} that doesn’t yet, and might never, exist creates an ''actual'' exposure the other way: the {{csaprov|Transferee}} of an {{csaprov|Independent Amount}} would be indebted to the {{csaprov|Transferor}} for its return.  

That said, there is a custom-built addition in Paragraph {{vmcsaprov|11}} that lets you build them back in if you want to. And who, in their right [[chicken-licken]]y mind, wouldn’t want to?</ref>