Tag Archives: Netting

  • Closeout Netting

    Posted on April 3, 2017 by Admin in Capital Market, Investment Banking.

    Closeout Netting is used when a counterparty is defaulted on its payment and termination/settlement of all the contracts associated with the counterparty need to be completed. It helps to terminate and settle all the net values of all the trades with the counterparty. It has two components, ⦁ Closeout- this enables the other party to […]

    Post Tagged with ,
    Continue Reading...
    No Comments.
  • Payment Netting

    Posted on April 2, 2017 by Admin in Capital Market, Investment Banking.

    Payment Netting is used by the financial institutions on daily basis to combine different types of payments into one single net payment. For Example on a particular day, Company A is expected to pay USD 10 Million as floating rate swap payment and USD 5 million as fixed rate swap payment and expected to receive […]

    Post Tagged with ,
    Continue Reading...
    No Comments.
  • Netting

    Posted on April 1, 2017 by Admin in Capital Market, Investment Banking.

    World-wide Derivatives market is huge and fast moving with different players changing their positions or taking new positions frequently. For many cases, some derivative positions offset other positions and there should be an effective way to reduce overall liability or counterparty risk for these derivatives transactions. Hence Netting is used to offset what one party […]

    Post Tagged with ,
    Continue Reading...
    No Comments.