Sovereign two-way CSAs would probably resemble one-way posting, says Dutch DMO


Reciprocal collateral agreements between sovereign swap users and dealer counterparts would probably not be radically different to one-way credit support annex (CSA) agreements, says Erik Wilders, head of the Dutch State Treasury Agency (DSTA) in The Hague. "In theory, if we were to sign two-way CSAs with swap dealers, the agreements would have to provide enough warranties to ensure we never get exposure to the credit risk of a bank. In other words, the CSAs would have very high posting thres