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Those loans had been collateralized with Enron stock.
The counterparty's obligation is fully collateralized with high quality assets, guaranteeing the transaction's performance.
In this scenario, the new bonds could be collateralized with state property.
Covered bonds, or Pfandbriefe, are collateralized with high-quality assets that stay on a bank's balance sheet.
Much of this paper was collateralized with the now-infamous mortgage-backed securities, and standing corporate credit lines could not compensate.
Another feature of this new order is that more and more financial transactions will be collateralized with the safest securities possible: United States Treasuries.
Similar(48)
Spohn settled for buying half the company, a transaction that Mr. Merckle pulled off with loans collateralized by the shares acquired.
Such repos are fully collateralized, the vast majority with U.S. Treasury and government agency securities that these institutions hold precisely because they are primary dealers.
Rather than present this as a default, the government should replace the old debt with new notes, collateralized and denominated in foreign currency, in the form of marketable long-term bonds.
As of mid-September, Goldman's exposure to AIG was $10 billion, $7.5 billion of which was collateralized and the other $2.5 billion hedged with credit default swaps.
Moreover, the majority of traded interest rate derivatives are nowadays collateralized and the remuneration of the collateral is based on the overnight rate.
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