Template:Csa fx haircut percentage: Difference between revisions

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A provision that assuredly goes into the {{isia}} category.
A provision that assuredly goes into the {{isia}} category.
Relevant to the calculation of {{{{{1}}}prov|Value}} of a gentleman’s {{vm{{{1}}}prov|Credit Support Balance}}. An observation one might make here is that if you have a cash-only {{tag|CSA}} and as long as you only accept the {{{{{1}}}prov|Major Currencies}}, then this entire Rube Goldberg provision is unnecessary: The {{{{{1}}}prov|Valuation Percentage}} will (most likely) be 100%, the {{{{{1}}}prov|FX Haircut Percentage}} will be zero, so the definition of value that these definitions feed into amounts to the following:
Relevant to the calculation of {{{{{1}}}prov|Value}} of a gentleman’s {{{{{1}}}prov|Credit Support Balance}}. An observation one might make here is that if you have a cash-only {{tag|CSA}} and as long as you only accept the {{{{{1}}}prov|Major Currencies}}, then this entire Rube Goldberg provision is unnecessary: The {{{{{1}}}prov|Valuation Percentage}} will (most likely) be 100%, the {{{{{1}}}prov|FX Haircut Percentage}} will be zero, so the definition of value that these definitions feed into amounts to the following:
:The amount (call it ''n'') ''multiplied by'' the sum of 100% ''minus'' zero%, ''or''
:The amount (call it ''n'') ''multiplied by'' the sum of 100% ''minus'' zero%, ''or''
:''n'' * (100% - 0%), ''or''
:''n'' * (100% - 0%), ''or''
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Sigh.
Sigh.
|title=|tagline=|documentation=|booklets=|customisability=|asset classes=|amendability=|transferability=|tenor=|leverage=|collateral=|longevity=|frightometer=}}

Latest revision as of 19:37, 18 January 2020

A provision that assuredly goes into the I’m sorry I asked category. Relevant to the calculation of {{{{{1}}}prov|Value}} of a gentleman’s {{{{{1}}}prov|Credit Support Balance}}. An observation one might make here is that if you have a cash-only CSA and as long as you only accept the {{{{{1}}}prov|Major Currencies}}, then this entire Rube Goldberg provision is unnecessary: The {{{{{1}}}prov|Valuation Percentage}} will (most likely) be 100%, the {{{{{1}}}prov|FX Haircut Percentage}} will be zero, so the definition of value that these definitions feed into amounts to the following:

The amount (call it n) multiplied by the sum of 100% minus zero%, or
n * (100% - 0%), or
n * 100%, or
n.

Sigh.

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