The Credit Support Annex (CSA) is a standard form collateral agreement which enables parties to an ISDA Master Agreement to receive and provide collateral in order to reduce counterparty risk. In practical terms, the bilateral agreement establishes the day-to-day management of the risk, which involves computing the mark-to-market of the parties? exposure across all the ISDA Master Agreements OTC derivatives and allowing the in-the-money party to make calls for collateral from the out-of-the-money parties.
