Initial Margin
Collateral intended to cover potential future exposure during the close-out period following a counterparty default.
Market use
Models, thresholds and eligible collateral depend on the clearing or bilateral framework.
What it means
Collateral intended to cover potential future exposure during the close-out period following a counterparty default.
Example
It is conceptually different from variation margin, which covers current exposure.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Conventions
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.