Replacement cost
- Japanese
- 再構築コスト
- Last reviewed
- September 26, 2026
This is a draft, shown for review before publication.
Replacement cost is the amount it costs, when a counterparty fails, to enter into the same transaction again at current market prices. It equals the value of the transaction when that value is positive, and is zero when the value is negative.
Related terms
Explained in detail
Pages that use this term
- ISDA SIMM: The Standard Model for Initial Margin
- Exposure Measures: CE, PFE, EE/EPE and EAD
- Exposure Profiles by Product
- Risk Reduction through Netting and Collateral
- Credit Limit Management
- Overview of the Regulatory Treatment of Counterparty Risk
- Derivatives in LCR and NSFR
- The Leverage Ratio
- Early Termination
- Settlement
- Netting Enforceability and Legal Opinions
- Portfolio Compression
- The CVA Risk Capital Charge