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RESTRUCTURING COUNTERPARTY CREDIT RISK

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Figure

Figure 1. General counterparty scheme including as special cases bipartite ar-rangements (just B and C), tri-partite arrangements (with A, B and C) andquadri-partite arrangements with all four.The margin lenders A and D postcollateral
Figure 2. Multi-party scheme involving a Central Counterparty Clearing House.

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