The use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. (putnam.com)
Model the asset liquidity profile and stress test it to understand the true benefit / cost of embedded funding costs, as well as margin requirements on derivative positions. (finalternatives.com)
• prevent the avoidance or deferral of income tax through the use of offsetting derivative positions in straddle transactions; (canadianlawyermag.com)