A Credit Support Annex (CSA) is a legal document that regulates credit support (collateral) to mitigate counterparty risk in financial contracts. Effectively, a CSA defines the terms under which collateral is posted or transferred between swap counterparties to mitigate the credit risk arising from in the money derivative positions.
A Credit Support Annex (CSA) is a legal document that regulates credit support (collateral) to mitigate counterparty risk in financial contracts. Effectively, a CSA defines the terms under which collateral is posted or transferred between swap counterparties to mitigate the credit risk arising from in the money derivative positions.
Source: Wikipedia "Credit Support Annex" · CC BY-SA 4.0
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