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Template:M intro isda Party A and Party B: Difference between revisions
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Revision as of 12:12, 12 December 2023
, 12 December 2023→Is it bilateral though?
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But there is a better objection: for all our automatic protestations to the contrary, the ISDA is not ''really'' a bilateral contract, and it ''is'' often a financing contract, in economic effect even if not in formal structure. Where there is a customer gaining exposure to a risk and a dealer providing delta-hedged exposure to that risk, a swap is a sort of “synthetic loan”. | But there is a better objection: for all our automatic protestations to the contrary, the ISDA is not ''really'' a bilateral contract, and it ''is'' often a financing contract, in economic effect even if not in formal structure. Where there is a customer gaining exposure to a risk and a dealer providing delta-hedged exposure to that risk, a swap is a sort of “synthetic loan”. | ||
This thought grew and grew and now there is a [[ | This thought grew and grew and now there is a [[A swap as a loan|whole new article about it]]. | ||
=== On the case for one-way margin === | === On the case for one-way margin === | ||