Template:Csa Transfer of Title summ: Difference between revisions

But as we know, {{csaprov|Exposure}}s ''don’t'' just quietly sit there. If they did, there wouldn’t be any need for initial margin, and collecting even variation margin would be less fraught. So if the {{csaprov|Transferee}}’s {{csaprov|Exposure}} has increased, the arrival of that income might serve to fill a hole in the existing coverage, in which case, why pay it away only to ask for it back again? Similarly, the value of a pending but as-yet-unpaid income payment will be priced into the value of the [[securities]] generating it.<ref>It will trade “[[dirty price|dirty]]” until the distribution is paid, at which point it will trade clean.</ref> So even if the {{csaprov|Exposure}} ''hasn’t'' changed in the mean time, the arrival of a [[coupon]] or [[dividend]] will reduce the {{csaprov|Value}} of those [[securities]] on which it was paid, so — [[all other things being equal]] — the {{csaprov|Transferee}} might expect to hang onto the {{csaprov|Distribution}}. <br>