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It sounds very safe, since the counterparties, or lenders, get collateral for their loans.
Euro zone states, which will be funding the majority of the second €109 billion bailout, are also locked in talks about a Finnish demand to get collateral to secure its contribution to the bailout.
They certainly don't get collateral.
"You have to stop an immune response or it will destroy you you'll just get collateral damage.
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And if Finland gets collateral, why not everyone else too?
It has insisted on special terms on its contributions to euro-zone bail-outs since mid-2011 by getting collateral on its lending.
Hedge funds started getting collateral calls from their brokers demanding more cash and the selling began.
3. Got collateral?
That downside protection is attractive to banks — because they will get hard collateral in the restructured deal.
In his experience, Mr. Shaev said: "The attorneys who represent the banks invariably state that they will get the collateral file for us and prove that the banks had possession of the documents at the appropriate time.
When orderly liquidation is undermined, there is a rush to get the collateral, which can actually propel the debtor into bankruptcy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com