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And while some leases expire before the bonds mature, many include safety provisions like agreements with tenants to renew their leases or requirements to post letters of credit as collateral.
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They were especially leery of asset-backed commercial paper, which sometimes uses mortgages and credit card receivables as collateral.
He also allowed the Fed to accept assets of debatable value — mortgage-backed securities, car loans and credit card debt — as collateral for some Fed loans.
Some intra-group deals involve letters of credit to serve as collateral; how useful these would be in a period of financial stress is anybody's guess.
According to the regulator, UBS received $23.6 million in upfront payments while acquiring credit default swaps as collateral for the CDO.
A secured credit card requires that you put down a deposit, which the credit card issuer holds as collateral.
The total land area may have indirect positive impacts on investment in trees by enabling farmers to generate production surpluses, to overcome credit constraints, where land can be used as collateral for credit (Kabore et al. 1997), and allow them to adopt improved agroforestry technologies that increase productivity of tree products.
All told, by escaping such contracts, Williamson has freed up $600 million in credit held by counterparties as collateral.
He needed more cash in his brokerage accounts because he had been tapping into a credit line with his investments as collateral.
Those deliberations became far more loaded when, just hours before the meeting began, the European Central Bank, in an unexpectedly aggressive move, said that it would no longer accept junk-rated Greek bonds as collateral for credit, citing the new government's threat to abandon the terms of its existing bailout.
The second arises from the guarantees it has given for securities based on home equity lines of credit (where a home serves as collateral), including for Countrywide Financial.
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