Common Approaches to Manage Daylight Exposure

Status: For Review, Last updated: 14-12-2020

If the counterparty is acting as lender, they will generally adopt a hold and release system. This means that the loan is only released when the relevant collateral is received. If hold and release is not used or if the counterparty is acting as borrower, the below approaches are generally used to reduce or remove daylight exposure. (IBP-178)