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The second raises the debt number because the same money can be counted several times if an institution buys debt securities, then uses them as collateral to issue debt of its own, which is what repo is all about.
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While the lenders that require collateral to issue a loan in the U.S. are typically catering to low-income customers, Furio views collateral as one of the only ways to lower interest rates for would-be borrowers in Brazil.
In the meantime, the best banks may be able to do is issue the bonds to themselves and then pledge them as collateral to the European or Portuguese central banks in return for cash.
Nor can they use land as collateral to raise credit.
The receipts had been used as collateral to borrow money to lend them.
Instead, it is held as collateral to assure the seller's repayment of the loan.
Mike Trippitt at Oriel Securities said: "Everyone knows banks use bonds as collateral to secure short-term lending".
"He posted his property as collateral to secure his appearance," Ms. Bumb said.
It used the entire company, even the Ford logo, as collateral to borrow $25 billion.
Worse, millions of homeowners used their residences as collateral to take out home equity loans.
But banks post complex financial instruments as collateral to central banks.
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