Valuation Percentage - CSA Provision: Difference between revisions
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{{ | {{anatcsa|Valuation Percentage|1995}} | ||
===Commentary=== | ===Commentary=== | ||
To be differentiated from an Independent Amount, the {{csaprov|Valuation Percentage}} is the [[haircut]] applied to the valuation of any assets posted as {{csaprov|Collateral}} under a {{csa}}. So it is a ''deduction'' in the value of credit support provided, whereas an {{csaprov|Independent Amount}} is an ''addition'' to the [[mark-to-market]] exposure under a {{isdaprov|Transaction}}. | To be differentiated from an Independent Amount, the {{csaprov|Valuation Percentage}} is the [[haircut]] applied to the valuation of any assets posted as {{csaprov|Collateral}} under a {{csa}}. So it is a ''deduction'' in the value of credit support provided, whereas an {{csaprov|Independent Amount}} is an ''addition'' to the [[mark-to-market]] exposure under a {{isdaprov|Transaction}}. | ||
{{csaanatomy}} | {{csaanatomy}} | ||
Revision as of 17:17, 26 July 2019
Commentary
To be differentiated from an Independent Amount, the Valuation Percentage is the haircut applied to the valuation of any assets posted as Collateral under a 1995 CSA. So it is a deduction in the value of credit support provided, whereas an Independent Amount is an addition to the mark-to-market exposure under a Transaction. Replace with {{anat|csa}}