That margin must cover exposure and potential future exposure (such as variation and initial margin) unless an exception applies.
What does PFE stand for?
PFE stands for Potential Future Exposure (credit risk)
This definition appears frequently and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of PFE
We have 90 other meanings of PFE in our Acronym Attic
- Physical Foundations of Engineering
- Piani Funzionali di Emergenza
- Pilot Flight Equipment
- Planning for Employment (North York, Canada)
- Plant Floor Event (computing)
- Plasma Fuel Engine (accelerator)
- Plate Frame Heat Exchanger
- Please Find Enclosed
- Portable Fire Extinguisher
- Post Fire Evaluation
- Power Feed Equipment (sea cabling)
- Premier Field Engineer (Microsoft)
- Pressurized Fluid Extraction
- Priests for Equality
- Professional Field Engineer
- Professional Flight Engineer
- Proficiency Flight Evaluation (US Army)
- Promotion Fitness Examination
- Proyecto Filosofía en Español (Spain)
- Public Financial Enterprise (various locations)
Samples in periodicals archive:
Forward curves can be used in mark-to-market accounting as well as in numerous analytical applications such as value-at-risk, potential future exposure, regressions and scenario analyses.
Nev Jackson, Amicus Regional Secretary said, "Today's seminar is vitally important in order to start the process of educating people into the dangers of Asbestos from both past exposure and potential future exposure at work and everyday life.
Credit exposures arising from these relationships consisted of the current marked-to-market value of the derivative transactions as well as the potential exposure that might arise from future changes in these market values (the potential future exposure or PFE).
Numerix leverages its core technology to calculate a wide range of risk analyses including Counterparty Credit Risk, including Potential Future Exposure (PFE) and Credit Valuation Adjustment (CVA), Greeks for all instruments, scenario VaR types, VaR analysis, expected tail loss/shortfall.
Potential future exposure measures the credit exposure between a counterparty and a bank and how this exposure could change in the future as market prices fluctuate.
The amount of the 2006 second quarter pre-tax charge represents Williams' estimate of the potential future exposure for actual damages of $68 million and potential pre-judgment interest of approximately $20 million.
More important, LTCM's counterparties appear to have significantly underestimated those potential future exposures.