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
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Credit risk
Risk management
Union beckons for the three quant tribes
Studies may be deferred, but future for grads is bright, argues UBS’s Gordon Lee
Receive this by email