Collateral

1. An asset provided as security for a debt.

2. Security provided in respect of a financial transaction, such as a swap. Collateral is normally provided in the form of cash or readily marketable securities.

See also

• Caps
• Haircut
• Repurchase agreement
• Risk mitigation
• Secured debt
• Security
• Collateral agreement
• Bilateral repurchase agreement
• Tri-party repurchase agreement