Template:Deliveryandreturnamounts

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Calculating Delivery Amounts and Return Amounts

Delivery Amounts

Transferee’s Exposure + Net Independent Amounts (IF ANY)[1]

  1. it is less than zero, KEEP QUIET. If you are lucky, the other guy won’t ask you for a Return Amount.
  2. it is more than zero but less than the Minimum Transfer Amount, also KEEP QUIET. No Delivery Amount for you today.
  3. it is more than the Minimum Transfer Amount you can demand the whole amount.

Return Amount

Basically the converse of a Delivery Amount. In this case you deduct the Credit Support Amount from the Credit Support Balance.

Bonus learning for free: In a subtraction, the sum being subtracted is the subtrahend and the sum it is being subtracted from is the minuend.

  1. In the 2016 VM CSA there really shouldn't be IA as it kind of defeats the regulatory goal of marking actual exposures to market, but there may be, since ISDA caved and retrofitted the CSA with a an Independent Amount section