as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
how are maturity mismatches between the credit protection arrangement and the underlying exposure treated?
user
maturity mismatches are allowed under specific conditions, requiring that the original maturity of the credit protection arrangement be at least one year, with its residual maturity being at least three months, to partially recognize credit risk mitigation.
assistant