Template:M comp disc GMSLA 1: Difference between revisions

Template:M comp disc GMSLA 1 (view source)

Revision as of 10:27, 2 July 2020

206 bytes added , 2 July 2020

no edit summary

Amwelladmin

Bureaucrats, Interface administrators, Administrators

82,882

edits

@@ Line 1: / Line 1: @@
-Sure, it is preliminary, preamble stuff, but this goes to the core of what is so ''structurally'' different — economically, they’re meant to be as near as dammit the same — about the {{pgmsla}} when compared with the {{gmsla}}. The {{Gmsla}} is a two-way title transfer agreement, where credit risk mitigation functions by offset, leaving the person who has transferred the greater value of assets (usually, ironically, the Borrower) with residual credit exposure, for the difference, to the one who has transferred the lower value. The {{pgmsla}} is a conventional secured Loan, where the Lender has credit exposure to the {{pgmslaprov|Borrower}} for the total value of the {{pgmslaprov|Loaned Securities}}, but this is collateralised by a [[pledge]] over {{pgmslaprov|Collateral}} to which the {{pgmslaprov|Borrower}} retains legal title.
+Sure, it is preliminary, preamble stuff, but this goes to the core of what is so ''structurally'' different — economically, they’re meant to be as near as dammit the same — about the {{pgmsla}} when compared with the {{gmsla}}. The {{gmsla}} is a two-way [[title transfer]] agreement, where [[credit risk]] mitigation functions by [[Set-off|offset]], leaving the person who has transferred the greater value of assets (usually, ironically, the {{gmraprov|Borrower}}) with residual credit exposure, for the difference, to the one who has transferred the lesser value — usually the {{gmslaprov|Lender}}, as it will insist on being over-collateralised by way of [[initial margin]].
+The {{pgmsla}}, by contrast, is a conventional secured “{{gmslaprov|Loan}}” where the {{pgmslaprov|Lender}} has [[credit exposure]] to the {{pgmslaprov|Borrower}} for the ''total'' value of the {{pgmslaprov|Loaned Securities}}, but this is collateralised by a [[pledge]] over {{pgmslaprov|Collateral}} to which the {{pgmslaprov|Borrower}} retains legal title.
 The reference to a {{pgmslaprov|Nominee}}, we think, is a flag to recognise that the {{pgmsla}} is typically suitable only for [[agency lending]] arrangements, in which the principal {{pgmslaprov|Lender}}s to the {{pgmslaprov|Loan}}s will be wealth-management clients and funds whose assets are managed by an [[agent lender]], abnd who have handed over responsibility for managing their {{pgmslaprov|Loan}}s to the [[agent lender]].