What is a CSA in legal terms?

Published by Charlie Davidson on

What is a CSA in legal terms?

A Credit Support Annex, or CSA, is a legal document which regulates credit support (collateral) for derivative transactions. The Delivery Amount is the amount the Credit Support Amount exceeds the Value of all posted Collateral held by the Secured Party.

What is a CSA in a swap?

The CSA supplements the ISDA Schedule, both of which are incorporated into, supplement, and form a part of the ISDA Master. Historically, parties have used the 1994 ISDA CSA to document their OTC margin collateral arrangements.

What is a unilateral CSA?

CSAs can be either ‘unilateral’ signifying that only the lower rated counterparty be required to post collateral, or ‘bilateral’, wherein either party to the agreement may be required to post collateral.

What is threshold collateral management?

Threshold Amount: This is a specified amount of the open exposure that the collateral provider is not required to secure through posting collateral. It’s an unsecured exposure that a party will take against a counterparty.

What is CSA margin?

A credit support annex (CSA) is a document that defines the terms for the provision of collateral by the parties in derivatives transactions. The majority of derivatives trading is done through private agreements.

What is a CSA in business?

Community Supported Agriculture (CSA) is a production and marketing model whereby consumers buy shares of a farm’s harvest in advance. Consumers become CSA members by paying an agreed amount at the beginning of the growing season, either in one lump sum or in installments.

What is initial margin CSA?

(ISDA®) typically govern margin collateral arrangements between parties that have entered into one or more derivatives transactions under an ISDA Master Agreement: 1995 Credit Support Annex (CSA).

Do swaps require collateral?

The concept of requiring swap transactions to be collateralized is not new. Collateralization of such transactions offers the additional protection of cash collateral (or any other agreed collateral) to cover the exposure of the lenders.

What is a zero threshold CSA?

If you have zero threshold, then every change in MtM causing your position into negative would require you to pay-in a collateral, positive position you would be expecting to receive collateral from your counterparty.

What does CSA mean in finance?

credit support annex
A credit support annex (CSA) is a document that defines the terms for the provision of collateral by the parties in derivatives transactions. It is one of four parts of a standard contract or master agreement developed by the International Swaps and Derivatives Association (ISDA).

What is the full meaning of CSA?

community-supported agriculture
abbreviation for community-supported agriculture: an arrangement to buy food that is grown or produced by local farms and businesses, or the system of producing and buying food like this: We get food from two CSA programs: one for veggies and one for meat.

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