How to pronounce“collateral”in English
At that time, that meant that if you were a heavily leveraged financial organization-- a Bear Sterns, for example-- and you were using these things as pledges and as repo
collateral, as they fell in value, you had to use more and more of them to borrow the same amount of money.
Unfortunately, you couldn't do that, because there's a fixed stock of the assets.
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Definitions of “collateral”
Parallel, in the same vein, side by side.
“Her anterior cruciate ligament (ACL) and medial collateral ligament (MCL) are torn and Vonn has a lateral fracture of the tibial plateau, the upper end of the tibia or shin bone.”
Corresponding; accompanying, concomitant.
“Yet the attempt may give / Collateral interest to this homely tale.”
A security or guarantee (usually an asset) pledged for the repayment of a loan if one cannot procure enough funds to repay.
“"The decline in the quality of eligible collateral is a grave problem. The ECB is now buying corporate bonds that are close to junk, and the haircuts can barely deal with a one-notch credit downgrade. The reputational risk of such actions by a central bank would have been unthinkable in the past."”
A collateral (not linear) family member.
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