Collateral

Collateral is assets provided to secure an obligation. Traditionally, banks might require corporate borrowers to commit company assets as security for loans. Today, this practice is called secured lending or asset-based lending.

Collateral Related Category: Money, Banking, and Investment (klt´rl), something of value given or pledged as security for payment of a loan.

Collateralized Bond (or Debt) Obligation (CBO or CDO) investment grade bond backed by a pool of variously rated bonds, including junk bonds .

Collateral assets that are pledged as security for payment of debt Similar financial terms Collateral trust bonds ...

Collateralized Debt Obligation - CDO An investment-grade security backed by a pool of bonds, loans, and other assets. CDOs do not specialize in one type of debt.

Collateral trust bonds Definition 1. A bond in which the issuer (often a holding company) grants investors a lien on stocks, notes, bonds, or other financial asset as security. Compare mortgage bond.

Collateral security is extra security provided by a borrower to back up his/her intention to repay a loan.

Collateral Loan Loan secured by the pledge of specific collateral such a borrowing $30,000 against a savings account of $60,000. Collateral Security Additional security supplied by borrower to obtain a loan.

Collateral which changes constantly, such as accounts receivable or inventory. Related Research Articles from the InvestorGuide.com University ...

Collateral is property which is pledged as security for the repayment of a loan. Commercial paper Commercial paper is a short term debt instrument issued by a corporation and sold through brokerages to investors.

Collateralized Mortgage Obligation (CMO) SECURITY whose cash flows equal the difference between the cash flows of the collateralizing ASSETS and the collateralized obligations of a securitized TRUST.

Collateral Assets, such as securities, that are pledged to a lender by a borrower. The assets secure the loan until the borrower repays it. In the event the borrower defaults, the lender has the legal right to sell the assets to pay off the loan.

Collateralized mortgage obligation (CMO): A mortgage-backed security collateralized by residential mortgages that are commonly guaranteed by government agencies and government-sponsored enterprises. (See mortgage-backed security.) ...

Collateral: A security interest that an FHLB is required by statute to obtain and thereafter maintain beginning at the time of origination or renewal of an advance.

Collateral - Property that backs up a loan and becomes the lender's if the loan is not paid. Also see security.

Collateral - assets that can be pledged to guarantee a loan. Convenience Goods - goods often used by the consumer, but the consumer is unwilling to spend "shopping time" to acquire them.

Collateral. Collateral Security given by a borrower to a lender in connection with a loan. Lenders frequently take collateral in a company's tangible and intangible assets and may require an owner's guarantee.

Collateral - items of value that are pledged as security for a loan. If the loan is not paid, the items are fortified. Compound Interest - a method by which interest is calculated on the principal amount and on the interest that was earned earlier.

Collateral: is the asset that is pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default. It is also known as security.

Collateralized mortgage obligation (CMO) A conventional mortgage-backed security has a single interest rate and maturity date. In contrast, the pool of mortgages in a CMO is divided into four tranches, each with a different interest rate and term.

Collateral Assets offered to secure credit. Commercial paper A short-term, unsecured loan typically issued by companies with high credit ratings (and therefore relatively low risk) for financing internal accounts.

Collateral Document - A legal document covering the item(s) pledged as collateral on a loan, i.e., note, mortgages, assignment, etc.

Collateral interests in real property leased by the borrower. For example, a borrower may own a building located on leased land.

Collateral - property, which is pledged as security for a debt. In the case of a mortgage, the collateral would be the land, the house, and other buildings and improvements.

Collateralized Mortgage Obligations ("CMOs"): Mortgage-backed, investment-grade bonds that separate mortgage pools (called tranches) into different maturity classes.

Collateral mortgage: A loan backed up by a promissory note and the security of a mortgage on a property. The money borrowed may be used for the purchase of the property itself or for another purpose, such as home renovations or a vacation.

Collateral Property that is accepted as security for a loan or other financial obligation. Collection The efforts used to bring an overdue mortgage, or other debt current, and the filing of necessary notices to proceed with foreclosure when necessary.

Collateralized Mortgage Obligation - Is a complex bond structure which reallocates interest and principal payment streams.

Collateral: property or goods used as security against a loan and forfeited to the lender if the borrower defaults. Co-signers: Joint signers of a loan agreement who pledge to meet the obligations of a business in case of default.

Collateral Assets that can be pledged to guarantee a loan. If the borrower fails to repay the loan according to the terms, the lender has the legal right to seize the collateral and sell it to repay the loan.

Collateral Assignments A collateral assignment is when the ownership rights in a contract or account are transferred from one person to another to serve as collateral for a debt.

Collateral Securities against which loans are made. If the value of the securities (relative to the loan) declines to an unacceptable level, this triggers a margin call.

Collateral: Assets pledged by a borrower as security for the repayment of a loan. Commercial paper: A negotiable corporate promissory note with a term of a few days to a year. It is generally not secured by company assets.

Collateral : Additional Security pledged to support a Project Financing. Combined Cycle: ...

Collateral Any asset having marketable value (such as land, home or car) that a borrower pledges as security in order to obtain a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract.

Collateral - Property (house, car etc.) pledged as a guarantee for repayment of money. Collectibles - like antiques, items worth saving, without regard to their age.

Collateral An asset pledged to guarantee the repayment of a loan. Collective bargaining Bargaining between management of a company or of a group of companies and the management of a union or a group of unions for the purpose of setting a mutually ...

Collateralized Mortgage Obligation (CMO) A backed by a pool of , structured so that there are several classes of bondholders with varying maturities, called tranches.

Collateral: What you give up if you don't repay a loan. For example, the collateral on a car loan is usually the car itself. If you don't make payments on time, the lender can take the car and sell it to pay off the loan.

Collateral: something of value given or pledged to a lender as security for the repayment of a loan.

COLLATERALIZED MORTGAGE A loan secured by an asset, such as real estate, against which the loan is made. See COLLATERAL. COMMERCIAL INVOICE ...

Collateral Property that is used to secure a loan. If the borrower defaults on the loan, the lender can seize the collateral. For example, a mortgage is usually secured by the house purchased with the loan.

Collateral Securities or other property pledged by a borrower to secure payment of a loan.

COLLATERALIZED MORTAGE OBLIGATION (CMO) A form of investment or mortgage backed bond that separates pools of mortgages into different maturity classes (trenches).

COLLATERAL:  Specific property pledged by a borrower as security for the repayment of a loan.

Collateral Common Stock Units of ownership in a public corporation represented by shares that constitute a claim on the corporation's earnings and assets.

Collateral Property that is offered to secure a loan or other credit and that becomes subject to seizure on default (also called security).

Collateral Trust Bond A bond secured by stocks or bonds of companies controlled by the issuing company, or other securities, which are deposited with a trustee. Combined Forecast The weighted average of two or more forecasts.

Collateral Trust Bond Combination Puts and calls held either long or short with different strike prices and expirations.

Collateral Assets pledged by a borrower to a secured lender in support of a credit facility which give the secured lender priority in repayment over unsecured lenders up to the value of the collateral.

Collateral: Assets pledged as security under a loan to assure repayment of debt obligations. Collateralized Bond Obligation (CBO): Securities issued against a portfolio of bonds with different degrees of credit quality.

Collateral bonds: An American term, to indicate those bonds which are secured by collateral, such as the pledging of mortgages (collateral mortgage bonds). Français: Obligations garanties Español: Bono garantizado ...

Collateral Asset than can be repossessed if a borrower defaults. Collateral Trust Bonds ...

Collateral Assignment This is when someone designates a policy’s death benefit OR cash surrender value TO a creditor AS security WHEN applying FOR a loan.

Collateral An ASSET pledged by a borrower that may be seized by a lender to recover the value of a loan if the borrower fails to meet the required INTEREST charges or repayments. Collusion ...

collateral security margin / Sicherheitsmarge / marge de garantie / margine di garanzia The margin or difference between the market value of collateral and the credit granted.

collateral: An asset which is pledged by a borrower to secure a loan. collateralized mortgage obligations (CMO): A more complex MBS designed to lessen uncertainty in cash flow by not having a specific maturity date and sold on an 'average life' basis.

Collateral Assets with monetary value, such as stock, bonds, or real estate, which are used to guarantee a loan, are considered collateral.

Collateralization. To pledge mortgages, bonds, accounts receivable or other marketable properties as security for a loan.

Collateral trust bonds A bond in which the issuer (often a holding company) grants investors a lien on stocks, notes, bonds, or other financial asset as security. Compare mortgage bond. Collateralized Bond Obligation (CBO) ...

See also: Market, Account, Money, Interest, Invest