In the previous post we reviewed the credit risk requirements under the internal ratings based (IRB) and advanced measurement approaches (AMA). In this post we focus on the various methods to recognize financial collateral in counterparty credit risk calculations. Eligible collateral is used to mitigate
Previously we discussed the creation, perfection and enforcement of security interest in collateral. In this post we will consider the situations where and the manner in which security interest is terminated. We will also consider the disadvantages to the lender of holding on to security interest and collateral after full repayment of debt has been made.
Earlier we discussed the creation and perfection of security interest in collateral. In this post we will look at the methods used for enforcing security interest when a default event or breach of security agreement occurs and how the proceeds recovered from collateral are applied.
Earlier we discussed the creation and perfection of security interest in collateral. It is also important that collateral be properly managed. The post below discusses two elements of collateral management.
Earlier we discussed collateral, collateral law and collateral valuation approaches. However for collateral to be effective the lender must have a security interest in it. This post discusses how security interest in collateral is created and perfected.
In this post we briefly look at the valuation methodologies used for assets other than real estate.