Sentence examples for liquid collateral from inspiring English sources

It allows banks to borrow against liquid collateral for three or six months through its indexed long-term repo auctions.

Under the decision, the exposure of non-euro area member states will be fully guaranteed by liquid collateral under legally binding arrangements.

In theory, when a margin call comes, an executive could use other liquid collateral to back the loans, instead of selling the shares against which the loans were made.

GONE are the genteel days when a central bank's role in oiling financial markets was limited to providing short-term cash loans in exchange for slightly less liquid collateral.

Hence, he argues, "we should limit the special treatment in bankruptcy to a much smaller group of contracts, such as those repos secured by highly liquid collateral (cash or Treasuries)." If that happens, then other types of short-term funding may become "more expensive and less pervasive," Plosser said.

A CCP shall accept highly liquid collateral, such as cash, gold, government and high-quality corporate bonds, with minimal credit and market risk to cover its initial and ongoing exposure to its clearing members.

But the Fed can provide a way to finance less-liquid collateral on the balance sheets of banks and primary dealers, the banks and securities dealers allowed to trade directly with the Fed.

Typically, on one side of a tri-party repo is a bank that wants to borrow some money and puts up liquid securities as collateral.

He said that when the Fed bailed out a nonbank, it was required to secure the loan with the same liquid, high-quality collateral it required when lending to a troubled bank.

The Fed is part of the JPMorgan takeover agreement as well, agreeing to take $30 billion of Bear's less liquid assets as collateral, a move that will no doubt make it easier for JPMorgan to sell the transaction to its own investors.

We are encouraging firms to improve their management of liquidity risk and to reduce over time their reliance on triparty repos for overnight financing of less-liquid forms of collateral.