Collateral
Investment Dictionary - Collateral
Collateral stands for asset that are pledged by a loan recipient in order to guarantee the prompt repayment of a loan.
collateral investment & finance definition
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An asset pledged as payment for a loan if the debtor fails to make regular payments. Collateral on a consumer loan may be an automobile, real estate, or other significant personal property.
Collateralized Mortgage Obligations
A collateralized mortgage obligation, or CMO, is a type of bond that is structured using mortgage-backed securities.
A cash flow collateralized debt obligation, or cash flow CDO, is a structured finance product that typically securitizes a diversified pool of debt assets.
Collateral trust bonds
A corporation may deposit stocks, bonds and other securities with a trustee to back its bonds. The collateral must have a market value at the time of issuance at least equal to the value of the bonds.
Collateral notes are simply promissory notes that commit specific resources to the repayment of an outstanding loan amount.
Collateralized debt obligations (CDOs) are investment-grade securities that are backed by a pool of various other securities, such as bonds, loans and other assets. They are called collateralized since there is some type of collateral behind them.
A Loan secured by the Collateral of some specified Real estate property which obliges the borrower to make a predetermined Series of payments.
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Collateral: Assets pledged to guarantee a loan, and which may be collected in case of default. In a margin account, the marginable securities serve as collateral.
Collateral
It is used to provide a guarantee for a loan. Can be encased by the bank if you default in any way on repayment of interest or principle of your loan or other obligations.
Collateralized Securities
"Banks and mortgage companies … have issued $6 trillion worth of [securitized loans]…. In a major economic downturn, this credit structure will implode." Chapter 19
Derivatives ...
Collateral: Assets pledged or provided as security.
Commodity: A generic term for any item or product (including indices) that can be traded by investors on a market.
Collateral
A specific asset pledged against possible default on a bond. Mortgage bonds are backed by claims on property. Collateral trusts bonds are backed by claims on other securities.
Collateral
Securities or other property pledged by a borrower to secure repayment of a loan.
Commercial Paper ...
Collateral Assets that are used as security for a loan.
Commercial Paper Unsecured debt (IOU), issued by large corporations, with maturities (at time of issue) less than a year. They can be traded on OTC.
Collateral - Something given to secure a loan or as a guarantee of performance.
Commission - A transaction fee charged by a broker.
Counter Currency - The second listed Currency in a Currency Pair.
Collateral - trader's insurance deposit.
Confirmation - situation on the technical analysis price chart when one or several indicators confirm the results of another indicator.
Collateral: An asset that is used to guarantee a loan until the loan is repaid. If the borrower defaults, the lender has the legal right to seize the collateral and sell it to pay off the loan.
Collateralized debt obligations (CDO)
Collateralized debt obligations or CDOs are a form of credit derivative offering exposure to a large number of companies in a single instrument.
Collateralised debt obligation, (CDO): A CDO is a type of bond. The issuer is normally a special purpose vehicle, (SPV). The SPV contains assets that back the interest and principal repayment of the CDO.
Collateral Trust Bond
A debt instrument issued by one corporation and backed by the securities of another corporation.
Collateral - the loan value of marginable securities; generally used to finance the writing of uncovered options.
Combination-any position involving both put and call options that is not a straddle.
Commodities - See Futures Contract.
Collateral
Collateral represents assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default. Also known as security.
Collateral Trust Bond ...
Collateral An asset pledged by a borrower to ensure payment to the lender or performance of an obligation. Collateral may include such things as goods, securities, intangibles, real estate assets and cash.
Collateral
Stock or other property that borrowers are obliged to turn over to lenders if they are unable to repay a loan. Collateral is important for companies that default on their 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 value
Collateral value is obtained by multiplying the loan-to-value ratio with the market value of an asset. The difference between 100 per cent and the loan-to-value ratio is the risk markdown which the lender works with.
Collateral - Securities or other property pledged by a borrower to secure repayment of a loan.
Commercial paper - Debt instruments issued by companies to meet short-term financing needs.
COLLATERALIZED MORTGAGE OBLIGATION (CMO) - A mortgage-backed security payable from mortgage repayments from a pool of mortgage loans. Typically, multiple classes of CMOs are issued secured by the same pool of mortgage loans.
Collateral - An asset pledged to support a loan.
Collateral Trust Bond - A debt instrument issued by one corporation and backed by the securities of another corporation.
Collateral: Collateral in general is stocks or other property that a borrower is obliged to turn over to lenders if they are unable to repay a loan.
Collateral: Securities or other assets that a borrower pledges to a lender to secure repayment of a loan.
Collateralized mortgage obligation (CMO)
A security backed by a pool of pass-through rates , structured so that there are several classes of bondholders with varying maturities, called tranches.
Collateral
Assets with monetary value, such as stock, bonds, or real estate, which are used to guarantee a loan, are considered collateral.
Collateralized Mortgage Obligations (CMO) and Real Estate Investment Conduits (REMIC) ...
Collateral Assignments
Collateral Assignments will often be placed on life insurance to guarantee the loan upon the death of debtor.
CMO (Collateralized Mortgage
Obligation) - A multiple-class mortgage-backed security. The REMIC has replaced the CMO and, today, all CMOs are issued in the form of REMICS; however, the terms are often used interchangeably.
LOAN COLLATERAL The use of gold stocks by the Official Sector to stand as collateral for foreign exchange loans, often during times of financial crisis.
LOCAL Independent individual on an Exchange floor trading for his/her own account.
Other collateral
Instruments that are not tradable online. For example, bonds and other positions that are transferred from another bank.
Out of the Money ...
What is Collateralized Debt Obligation (CDO)?
Collateralized debt obligation (CDO) definition and explanation. Information about how collateralized debt obligations work, their advantages and drawbacks.
What is Beta?
General Collateral Financing Trades - GCF
General collateral repurchase agreements executed on a blind broker basis through the Government Securities Clearing Corporation.
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Collateral that the holder of a position in securities, options, Forex or futures contracts, has to deposit to cover the credit risk of his counterparty. Other definitions to MARGIN, used in other areas are: ...
Collateralized debt obligations (CDO) are packages of mortgage-backed securities (MBS). The CDO are diced up into different risk slices and sold to investors.
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.
Collateral
An asset than can be repossessed if a borrower defaults. ...
Combination Strategy ...
Collateral
AnAn asset pledged as security to ensure payment or performance of an obligation.
Comex ...
Collateral offered by a debtor to a lender to secure a loan called collateral security.
SHAREHOLDER
Owner of one or more shares of stock in a corporation.
Collateralized loan obligation (CLO)
A security backed by a pool of commercial or personal loans , structured so that there are several classes of bondholders with varying maturities, called tranches.
The collateral offered by a borrower to a lender to secure a loan.
Seed Capital
Capital provided for a new and/or existing business venture by persons other than the proprietors.
cash collateral The proceeds of cash collected from the sale of liquid assets while in bankruptcy. cash commodity An actual physical commodity which is delivered at the completion of a contract,...
A loan where no collateral is put up against the debt. The individual or institution making the loan has no claim on the debtors assets and is completely dependent on the borrowers willingness and ability to repay.
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Margin serves as collateral to cover any losses that you might incur. Since nothing is actually being purchased or sold for delivery, the only requirement, and indeed the only real purpose for having funds in your account, is for sufficient margin.
Historically, accommodation meant the making of a loan by one person to a second person who lacks sufficient collateral but has the backing of a third person.
Asset-Backed Security (ABS) A "fixed income" security that pays its coupon and principal from a specific revenue stream and has a specific asset as collateral. Collateral has included accounts receivable for aircraft, automobile and r.v.
Collateral trust bondsA 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 : Something given to secure a loan or as a guarantee of perfor... Combination spread : Synthetic future. A compound option strategy that co... Condor spread : A compound option strategy that consists of either four s...
Collateral Any marginable securities (e.g., stock, cash) used a basis for borrowing money.
See also Fungibility Naked Uncovered option A short option position that is not fully collateralized if notification of assignment is received. A short call position is uncovered if the writer does not have a long stock or long call position.
The funds in your account (the minimum margin) actually serve as your collateral.
Therefore, it is only natural that your broker will not allow your account balance to fall below the minimum margin.
Margin: The amount of money or collateral deposited by a customer with his broker, by a broker with a clearing member, or by a clearing member with a clearing organization. The margin is not partial payment on a purchase.
 See also: Market, Investment, Interest, Risk, Stock
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