Derivatives · glossary
The cash one side has posted under the Collateral Annex and is owed back. Atlas's balance was €300,000 from May 2028, earning interest. When the swap ended, Atlas chose to count it as a sum the bank owed, so it came off the bill. Annex, paragraph 6 · Chapter 10 · Chapter 12
Explained in Chapter 10, Collateral: the Annex and the Call, of Derivatives.
The price falls on Atlas. The Credit Support Balance (the cash Atlas has posted) is the bank’s money. If the bank failed, the trades would end and the balance would go into the one net sum, as Chapter 12 shows. Atlas would be an unsecured creditor only for any part of it above what Atlas owed.Read Chapter 10, Collateral: the Annex and the Call →
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