Template:Crmtechniques: Difference between revisions

*A [[title-transfer collateral arrangement]] whereby a bank transfers {{tag|collateral}} to a counterparty outright may, as part of  a valid [[netting]] agreement, mitigate that collateral but it will leave an exposure for the return of any [[excess collateral]] should the MTM move (or any margin [[haircut]]); however

*A [[pledged collateral arrangement]] — at least [[to the exent]] that the bank doesn’t surrender legal title<ref>Do not get me started on [[rehypothecation]].</ref> to the collateral at all — will<ref>Assuming you get the legals right...</ref> leave the bank with ''no'' counterparty {{tag|credit exposure}} at all to the haircut or excess, seeing as it remains the bank’s, and if the counterparty goes [[bust]], the bank does not have to claim it from the counterparty’s insolvent estate.