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Since prudential requirements to have [[netting opinion]]s do not apply within single transactions, one does not need a mini close-out provision to net within transactions under a GMSLA. That happens as of right. Therefore if, as is often the case, your loan portfolio is all the “same way round” — if you are borrowing from, but never lending to, a lender in a gross jurisdiction, then netting doesn’t really do anything for you. Your problem will be your {{gmslaprov|collateral}} [[haircut]], for which you will be an unsecured creditor of the lender. To fix this, a pledge GMSLA is what you are looking for. | Since prudential requirements to have [[netting opinion]]s do not apply within single transactions, one does not need a mini close-out provision to net within transactions under a GMSLA. That happens as of right. Therefore if, as is often the case, your loan portfolio is all the “same way round” — if you are borrowing from, but never lending to, a lender in a gross jurisdiction, then netting doesn’t really do anything for you. Your problem will be your {{gmslaprov|collateral}} [[haircut]], for which you will be an unsecured creditor of the lender. To fix this, a pledge GMSLA is what you are looking for. | ||
===Odd spot=== | |||
See the peculiar impact [[mini-closeout]] has on {{isdaprov|Default Under Specified Transaction}} under the {{isdama}}. | |||