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  1. Nicole Seaman

    P2.T6.917. Wrong way risk (Gregory Ch.17)

    Learning objectives: Describe wrong-way risk and contrast it with right-way risk. Identify examples of wrong-way risk and examples of right-way risk. Discuss the impact of collateral on wrong-way risk. Discuss the impact of wrong-way risk on central counterparties. Questions: 917.1. Among its...
  2. Nicole Seaman

    P2.T6.910. Credit exposure profiles (Gregory Ch.7)

    Learning objectives: Identify factors that affect the calculation of the credit exposure profile and summarize the impact of collateral on exposure. Identify typical credit exposure profiles for various derivative contracts and combination profiles. Questions: 910.1. Consider credit exposure...
  3. Nicole Seaman

    P2.T6.905. ISDA Master Agreement and credit support annex (Gregory Ch.6)

    Learning objectives: Describe the rationale for collateral management. Describe the terms of a collateral and features of a credit support annex (CSA) within the ISDA Master Agreement including threshold, initial margin, minimum transfer amount and rounding, haircuts, credit quality, and credit...
  4. A

    Types of collateral

    Which of the following instruments is the most common type of collateral? A) Cash. B) Government securities. C) Commercial paper. D) Letters of credit. The right answer is A). Why?
  5. N

    Repo, Collateral, Re-use and Legal ownership

    Hi @David Harper CFA FRM, In 2 separate questions on Gregory's Question Set there is the idea of legal ownership of the collateral and also if its different in case of re-hypothentication (re-use). I just want to be clear of the legal ownership is transferred or not. Question 406.2 Option B is...