Secured debt and Securities Financing Transaction: Difference between pages

Revision as of 21:29, 12 November 2016

(SFT).

SFTs allow market participants to access secured funding by using their assets to finance themselves.

This involves the temporary exchange of assets as collateral for a funding transaction.

An example of an SFT is a repurchase agreement.

@@ Line 1: / Line 1: @@
-Debt backed by collateral in the form of real or monetary assets.
+(SFT).
-The debt provider takes a legal charge or mortgage debenture against the asset pledged as security.
+SFTs allow market participants to access secured funding by using their assets to finance themselves.
-All other things being equal, secured debt is safer for the lender than unsecured debt.
+This involves the temporary exchange of assets as collateral for a funding transaction.
+An example of an SFT is a repurchase agreement.
 == See also ==
 * [[Collateral]]
-* [[Debenture]]
+* [[Repurchase agreement]]
 * [[Security]]
-* [[Unsecured debt]]