Sentences with phrase «post additional collateral»

When AIG could not post additional collateral and was required to provide funds to counterparties in the face of deteriorating reference obligations, the U.S. government bailed them out.

Not exact matches

If the market value of the security basket does fall below 90 % of the ETF's NAV, the fund will ask the swap counterparty to pay the prevailing swap value by posting (or delivering) additional securities to top up the security basket (and thereby increase the collateral held) back to 100 % of NAV and thereby at least temporarily reducing counterparty risk back to zero.
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