Collateral swap
Jump to navigation
Jump to search
A collateral swap refers to the lending of liquid assets, such as top-rated government bonds, to another, in return for the receipt of less liquid collateral.[1] The borrower of the liquid funds pays a fee to the lender to compensate for the risk of holding a less liquid asset.
References[edit]
- ↑ Concern mounts over rise of collateral swaps. Financial Times.