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Mondo Visione
Feb 4
Comment
RTS Clearing Center has reviewed the list of securities that can be accepted
as collateral for trades executed on FORTS, the derivatives market of RTS Stock
Exchange, and RTS Standard.
Business Standard
Jan 12
Comment
Only listed bonds which are rated AA and above and have original maturity of at least one year can be used collateral in the repo market, RBI said in a notification.
BusinessWeek
Dec 24
Comment
Latvia, which doesn’t produce any vehicles of its own, has become a net exporter of cars as banks in the bailout dependent Baltic state liquidate vehicles that were pledged as collateral by insolvent borrowers.
Bloomberg
Nov 20
Comment
(Update1) The European Central Bank tightened
the rules for the collateral it will accept for loans as part of
efforts to restore the “proper functioning” of markets.
Business Standard
Nov 15
Comment
In a major setback to cash-strapped infrastructure company Maytas Properties, promoted by former Satyam Computer founder B Ramalinga Rajus family, a local court has passed an order barring it from using land as collateral for loans.
Mondo Visione
Nov 3
Comment
As of October 26, 2009, the Derivatives Clearinghouse's new electronic collateral management system has been operational. The new version provides more agility in the management of collateral for transactions carried out at the Brazilian Exchange....
Wall Street Journal
Oct 29
Comment
AIG has recouped billions of dollars from banks, as credit-default-swap trades have reversed in its favor.
Sydney Morning Herald
Oct 27
Comment
When Russian billionaire Alexander Lebedev’s OAO National Reserve Bank seized collateral offered against a loan from a cash-strapped borrower, a health quarantine was slapped on the security: 40,450 pigs.
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more ▼WIKI ANALYSIS
WIKI ANALYSIS| This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition. |
TOP CONTRIBUTORS
Collateral is an asset or assets offered by a borrower in order to procure a loan. Should the borrower default on his payment(s), the lender would take possession of the collateral, which may then be sold to recoup the lender's losses.
Technically, collateral could be any asset, though typically it takes the form of personal property, investment securities, or real estate, the values of which can be readily determined.
Examples
- A woman takes out a mortgage to pay for her home. As collateral, she offers the home itself. Should she default on the loan, the lender (typically a bank) would take possession of the home. The bank may then sell the property to recoup its losses.
- A man needs a cash loan to pay for several large, immediate expenses. As collateral, he offers the lender his car. Should he default on the loan the lender would take possession of the car, which he or she may sell to recoup losses.
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