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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.
Mondo Visione
Oct 22
Comment
Clearstream, the International Central Securities depository within Deutsche
Boerse Group, and the Banque centrale du Luxembourg (BCL) are launching a new
service allowing all Luxembourg based banks to optimise further their use of
collateral to...
Finance Asia
Oct 21
Comment
Collateral is only as good as the ability to sell it and make a counterparty whole, says the global head of collateral management and clearance at J.P. Morgan Worldwide Securities Services.
Commodity Online
Oct 21
Comment
Can gold the hottest commodity in the world be accepted as a collateral for trades on global exchanges? Jeremy Hughes spokesperson for CME Clearing said: During conversations with the London bullion market it became clear that a lot of...
Insurance Journal
Oct 14
Comment
The ability to reasonably estimate the amount a plaintiff can recover for medical expenses is a key component in properly evaluating a personal injury claim.
Because negotiations between the ...
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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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