collateralization

Learning Objectives: Describe the implementation of a margining process and explain the determinants of and calculate initial and variation margin requirements. Describe the process of buying stock on margin without using CCP and calculate margin requirements. Describe the role of...

Learning Objectives: Identify the participants and describe the use of collateralization in the derivatives market. Define the International Swaps and Derivatives Association (ISDA) Master Agreement, the risk-mitigating features it provides, and the default events it covers. • Describe the...

Learning objectives: Describe how exchanges can be used to alleviate counterparty risk. Explain the developments in clearing that reduce risk. Describe netting and describe a netting process ... Describe the role of collateralization in the OTC market and compare it to the margining system...

Learning objectives: Explain the motivation for and the challenges of pricing counterparty risk. Describe credit value adjustment (CVA). Calculate CVA and the CVA spread with no wrong-way risk, netting, or collateralization. Questions: 914.1. Your colleague has drafted guidance for your firm's...

Learning objectives: Explain the impact of collateralization on exposure, and assess the risk associated with the remargining period, threshold, and minimum transfer amount. Assess the impact of collateral on counterparty risk and funding, with and without segregation or rehypothecation...

Learning objectives: Differentiate between a two-way and one-way CSA agreement and describe how collateral parameters can be linked to credit quality. Explain aspects of collateral including funding, rehypothecation and segregation. Explain how market risk, operational risk, and liquidity risk...

Learning objectives: Describe the mechanics of collateral and the types of collateral that are typically used. Explain the process for the reconciliation of collateral disputes. Explain the features of a collateralization agreement. Questions: 906.1. According to Gregory, collateral agreements...

Learning objectives: Explain the convergence of futures and spot prices. Describe the role of a clearinghouse in futures and over-the-counter market transactions. Describe the role of collateralization in the over-the-counter market and compare it to the margining system. Identify the...