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Worse, the majority of the banks' problem loans today are collateralised with odd-shaped plots that are difficult to develop.
ETVs are typically characterised by investments in underlying raw materials or futures, collateralised with Treasury bills.In Europe synthetic funds make up around half of the ETF sector by assets.
This was such good business that for a while Peru's government debt was collateralised with deposits of dried faeces.Jarvis, Baker and Howland islands, which are at the centre of the new reserve, were claimed by America under the Guano Islands Act of 1857.
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Michael Werner of Sanford C. Bernstein, an investment bank, is relaxed, pointing to official figures claiming that 75% of property loans are collateralised, compared with only 38% of loans to manufacturers and 24% of those to utilities.
The fastest growth came from private-equity groups, which raised $53 billion in three months, two-thirds more than a year earlier.As in other parts of the debt markets, the liquidity has been fed by the large number of investors willing to buy tranches of collateralised debt obligations or, in the case of leveraged lending, collateralised loan obligations, a market which has rallied since 2002.
These were fully collateralised loans.
Would collateralised debt obligations be traded in for Collateralised Unpaid Debt?
Retail loans are mainly collateralised, and used to finance purchases of cars and houses.
True, lending was collateralised, mostly by land and shares, the price of which, until this decade, always seemed to go up.
But their ratings for one new instrument, collateralised debt obligations (CDOs), have not done so well (see article).
The $85bn loan is collateralised by all of AIG's assets and the Fed can veto dividend payouts to the insurer's shareholders.
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