Risk Reference

Liquidity & Funding

Separate a valuation loss from collateral calls, financing needs and the ability to sell.

Read valuation and cash-flow stress together without double counting losses, sale proceeds, delayed receipts, or financing capacity.

Distinguish variation margin, incremental initial margin, collateral eligibility, and cash availability when reviewing a stress scenario.

Calculate stressed borrowing capacity, identify collateral shortfalls, and avoid confusing financing haircuts with realized sale losses.