One of Berkshire's portfolio positions is Moody's, whose credit analysts blessed all the offerings of collateral debt obligations.
They often have significant and liquid endowments that serve as collateral for the debt.
The analyst even said that the extension is a positive in that the holders of the notes are continuing to work with the company on the liquidation of the underlying mortgage-backed securities, which are serving as collateral for the debt.
Among the remedies available to Primerock is the option to seize collateral that backed the debt.
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Steep downgrades of the sovereign-debt ratings of countries such as Portugal, Greece and Ireland would probably translate into immediate rating cuts for their banks, as well as higher capital charges on banks' debt holdings and bigger haircuts when using this debt as collateral.
Using an ERP, the owner remains on title to the real estate or business, whilst a third party depletes its value, typically through a bogus mortgage or some other arrangement whereby the asset is used as collateral or security for a debt.
This would help Greece avoid a funding squeeze and would come perhaps at the cost of conditions floated last week including a higher coupon rate at rollover and collateral to be held by the debt holder.
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The shared appreciation feature gives the lender the right to the first, say, 40% of the appreciation of the collateral above the value of the debt over some specified future time period (say five or 10 years).
Today they enjoy laxer accounting, loose collateral rules at central banks, explicit debt guarantees and asset-purchasing schemes.
It might be that this collateral ends up being declared a heinous debt, one that should not legally be recovered.
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It did this by classifying such subsidiary sovereign debt as the highest quality collateral - which means that banks wanted an ample stock of it, just in case they needed assets to swap for central bank loans.
That expands the list of eligible collateral which banks can post from securitized debt (those asset-backed bonds accepted since Dec. 2007 on top of government gilts), just so long as the loans are residential or commercial real-estate mortgages, consumer loans (but not including credit cards), or corporate loans to non-bank borrowers.
Leucadia was trying to collect on unsecured debt, where there is no collateral and little recourse for the lender.
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The European Central Bank must avoid creating an incentive for banks to load up on Greek debt and then offer it as collateral for liquidity from the ECB, by (controversially) offering less cash for government bonds with lower credit ratings.
The catalyst: ratings agency downgrades on structured products like collateralized debt obligations containing subprime-tainted mortgage collateral.
If the rating agencies were to declare that Greece has defaulted on its debt obligations, Greek government debt would no longer serve as viable collateral for the ECB.
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The pressure stems from fears that ratings firms may downgrade Lehman's debt, which could force Lehman to put up more collateral and cause some counterparties to walk away.
An alternative to the promissory note arrangement is considered in which a 40-year bond is used as collateral for regular ECB loans which replace an equivalent amount the ELA debt.
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The collateral behind them ranges from safe, government-backed mortgages to risky subprime debt.
The previously undisclosed debt meant the Credit Suisse funds no longer had an exclusive claim on their loan collateral.
Once a municipal bond is refinanced, (prerefunded) the issuer uses the proceeds of the new issue and purchases US Treasury securities (collateral) that are used to pay the interest and principal on the original, more expensive debt until maturity or the call date, whichever the escrow agreement states.
The latter collateral will come into play only where the cash surrender value of the policy is insufficient to meet the debt obligation.
The package allows Norwegian banks to swap toxic debt products like mortgage-backed securities for new government bonds, which can then be used as collateral for borrowing from the central bank.
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