netting

Hi David, Just a question about netting. Could you perhaps provide an example of netting that imposes higher losses for certain credtors. Legal risk is mentioned in the notes but in the video you've also mentioned that it imposes other creditors to more significant losses. Many thanks in...

Netting what is the difference between CLOSE OUT NETTING and WALKAWAY NETTING? can we say WALKAWAY is a special case of CLOSEOUT NETTING?

There are two parts to this post. The first deals with a Practice Question Q 49 from 2018. The second modifies that to test the concept of multilateral netting. Q 49. Four derivative counterparties have entered into bilateral netting arrangements. The exhibit below presents a summary of their...

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Hi David, In Gregory chapter 4 there are separate sections for "netting" and "close out netting " Is there any difference between the 2 as the examples provided for each of them also seems identical Thanks

Why will the netting benefit be the greatest when a party enters into a trade with positive initial MtM and negative correlation? Can someone please explain the link between the two? Thanks a lot in advance.