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Others must put up collateral or face frequent margin calls.
AIG was required to put up collateral against the deals.
Companies could get someone to put up collateral for a loan in exchange for something.
Lower-rated institutions, including most big commercial and investment banks, generally do put up collateral.
But the fall in Repsol's share price has forced it to put up collateral to meet margin calls.
When prime brokers lend money to hedge funds, the funds are required to put up collateral (Treasury bonds and the like).
Similar(21)
Libor rates are supposed to be the rates at which banks can borrow from one another without putting up collateral.
The central bank said that it would also raise the interest rate it charges for rediscounting -- essentially, overnight lending with the bank putting up collateral -- to 3.24percentt from 2.97percentt.
Instead of going to the bank and putting up collateral to fund their crazy idea, entrepreneurs tap into a world that is seeking out connections and ideas everyday.
His lenders demanded that he put up more collateral.
While brokerages can use customer funds, they must put up sufficient collateral.
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