LAWIN

Tag: Risks

  • Collateral

    Collateral Provider He or she is the party that is required, pursuant to the terms of the applicable credit support arrangement, to provide collateral in respect of its obligations. A Collateral Provider is refer to the transferor of collateral (under a title transfer document) or the party […]

  • Collateral

    Collateral Provider He or she is the party that is required, pursuant to the terms of the applicable credit support arrangement, to provide collateral in respect of its obligations. A Collateral Provider is refer to the transferor of collateral (under a title transfer document) or the party […]

  • Collateral Asset

    Collateral Asset Trends According to the International Swaps and Derivatives Association: As the use of collateral assets for credit enhancement in the derivatives market has grown over the past decade, collateral practitioners have witnessed increasing convergence of market practice in relation to the assets that are commonly given and accepted as eligible collateral. At one…

  • Collateral Dispute

    Collateral Dispute Dispute Collateral Call After the margin call notice has been sent, the counterparty will generally want to confirm its agreement to the margin call. There are three options for responding to a margin call: full agreement, partial agreement (where, for example, a party agrees to five million of a ten million call), and…

  • Threshold

    In Collateralization The underlying commercial reason for Thresholds is that often parties will be willing to take a certain amount of credit risk to each other (equal to the Threshold) before requiring collateral to cover any additional risk. Banks, in particular, are in the business of […]

  • Non-Collateralization

    Non-Collateralization Collateralization of credit exposures generated by bilateral OTC Derivatives is a key risk mitigant broadly used in the market. The benefits are broadly acknowledged and affect dealers and end users, as well as the financial system generally. However, it is worth noting that in the very early stages of their development, the OTC derivative…