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The Fed has been willing to buy debt on the commercial paper market without solid collateral.
But Lehman clearly had some solid collateral, even if not enough for a government takeover of a collapsing firm.
In particular, Treasury bills — short-term U.S. bonds — are what investors demand when they want absolutely solid collateral against loans.
Second, bankers prefer to lend against solid collateral, in particular property; periods of rapid credit growth tend to be associated with property booms.
But for every loan, the RFC got equity or solid collateral.
What aid is given should be considered a loan, and the government should demand solid collateral in return.
Similar(54)
Real estate investment trusts offer steady income and rock-solid collateral.
If you are opening a franchise outlet that is on the approved S.B.A. list or if you have solid personal collateral outside of your new business, you've got a shot.
"Until the late 1990s, when the asset-backed mortgage bonds began to be issued in earnest, investment bankers would hire a due diligence firm to make sure the real estate collateral was solid," said Coffee.
The plan agreed to by Mrs. Merkel and other leaders calls for banks to voluntarily swap some of their Greek bonds for more solid paper backed by collateral.
That's not bad, given that the collateral is pretty solid.
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