New York Times  Sep 5  Comment 
An arrest, whether or not a conviction follows, has long-term consequences for a defendant’s family.
Mondo Visione  Aug 20  Comment 
Singapore Exchange (SGX) is consulting the public on the proposed introduction of Affiliate Segregation where collateral of an affiliate of an SGX Derivatives Clearing (SGX-DC) member is protected if the member defaults on its own contracts. The...
New York Times  Jul 25  Comment 
Loans guaranteed by stashes of fine wines are allowing oenophiles to meet their short-term financial needs while their collections age to perfection.
Reuters  Jul 23  Comment 
Offshore investors in Indian exchange BSE Ltd will be allowed to post triple-A rated foreign sovereign bonds as collateral with Clearstream's clearing systems when trading, the two companies said in a joint statement on Thursday.
Forbes  Jul 1  Comment 
Credito Emiliano accepts young Parmigiano-Reggiano as collateral, and then ages it in climate-controlled vaults until it's ready for sale.
The Hindu Business Line  Jun 25  Comment 
The Reserve Bank of India has cautioned against the use of collateral for purposes other than those it is intended for, by the clearing member, as the securities are transferred into an omnibus...
Mondo Visione  May 19  Comment 
Euroclear today published a report entitled “ Collateral Management in Europe: Searching for Central Intelligence ” at its 14 th  annual Collateral Conference in Brussels, Belgium.   Produced by Aite Group, the report highlights the...
Reuters  May 13  Comment 
China is set to let banks and local governments use municipal bonds as collateral for borrowing, according to sources and an official document seen by Reuters, which could pump prime a fledgling market Beijing hopes will help local authorities...
Mondo Visione  Apr 22  Comment 
Lombard Risk Management plc (Lombard Risk), a leading provider of integrated collateral management, regulatory compliance and reporting solutions for the financial services industry, was presented with the prestigious 2015 Custody Risk Americas...
Insurance Journal  Apr 21  Comment 
The European Union will mount a fresh bid to persuade the United States to free up the billions of euros in collateral it requires foreign reinsurers to set aside against policies. EU states agreed on Tuesday to give the bloc’s … The article...


Related Articles


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.

Other terms in common use in the market are"margin", "margin asset" and "margin agreement" and similar terms using "credit support" instead of "collateral" or "margin," collateral", "collateral asset" and"collateral agreement." [1]

When a lender offers a loan against collateral offered by the borrower, the lender is said to take a security interest in the collateral. [2]


  • 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.
  • In Uruguay, no private bank would accept cattle as collateral for a loan. By contrast, in Kansas, cattle are considered the best collateral for a loan.

14c., "accompanying," also "descended from the same stock," "side by side, "together" "parallel, along the side of" 16c., "colleague, associate." Meaning "thing given as security" is from 1832, Amer.Eng., from plrase collateral security (1720). [3]

See Also

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki