Template:Csa Delivery Amount comp: Difference between revisions

Now the interesting thing here is the difference that ''[[pledge|pledged]]'' collateral under the New York law versions of the CSA makes over ''[[Title transfer|title-transferred]]'' collateral regime of the English law versions. You will see the difference in the NY law version’s {{{{{1}}}|Delivery Amount}}, which is the positive difference between Secured Party’s {{{{{1}}}|Exposure}} and the value of Posted Credit Support ''held by the Secured Party'' — easy, right? — and the equivalent provision in the English law versions which is the positive difference between the {{{{{1}}}|Transferee}}’s {{{{{1}}}|Exposure}} and the {{{{{1}}}|Credit Support Balance}} ''adjusted to exclude any inflight but unsettled collateral movements''.

The English law versions are a bit more leaden in how they describe things but these amount to the same thing: you don’t get any credit (support) for collateral ''until it has landed with the other party''.  

 

This creates some curious scenarios, as you will see.