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Roughly one-half of the money lent at a typical Citifinancial branch is to borrowers who pledge no collateral, for example, while a significantly higher share of Associates' loans are secured by equity in the borrower's home or some other asset.
Qualcomm, which owned 6% of GlobalStar, received cash for only 60% of sales to GlobalStar and extended credit with almost no collateral for the balance.
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There's no collateral required for loans under $5,000 and they can be as large as $1.5 million.
In a big derivatives bust, there may be no collateral left for the creditors who are next in line. .
"I had no real collateral for a deal of that size," he said.
This kind of thinking leads to the idea that somewhere there exists a "kills-99%-of-all-known-corruption" blaster which could wipe it out with no collateral damage – like, for instance, the descent into destitution of a corrupt police officer's family.
The threat of more downgrades has encouraged speculation that Greek government bonds might soon no longer qualify as collateral for lending operations from the European Central Bank.
One of those accuses Dr. Waksal of defrauding Bank of America by pledging ImClone securities he no longer owned as collateral for $44 million in loans.
Further downgrades could mean the bonds might eventually no longer qualify as collateral for Greek banks seeking ultra-cheap liquidity from the central bank.
Further downgrades could eventually mean that the bonds might no longer qualify as collateral for Greek banks seeking low-cost liquidity from the central bank.
Often no collateral is requested except for big loans or for persons without permanent residence.
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