He told Millennium Group members their accounts would be converted to FIIK holdings and used for "collateralized loans" in Bias' energy venture.
Thirdly, the wholesale banking operations, the collateralized loans, the derivative positions, the futures, puts and calls would be in their own unit.
Mortgage loans represent loans collateralized by one-to-four-family residential real estate.
In addition, the Federal Reserve and the Treasury have jointly announced a facility that will lend against AAA-rated asset-backed securities collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration.
The loans will be collateralized by real estate and marketable securities.
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So far, most of the pain from the downturn has been borne by banks and other institutions that hold debt or securities collateralized by commercial-real-estate loans.
The company caters to fund managers and institutional investors trading in illiquid assets like private company stock, bankruptcy claims, loans, mortgage-backed securities and collateralized debt obligations.
Structured products like collateralized debt obligations have lost billions in value as the loans underlying their complex structures deteriorate.
Since nobody seems to know what is inside all those collateralized debt obligations and their kindred collateralized mortgage obligations--mega-investment pools that bundle subprime loans--2007 audited results should help bolster confidence when they're released sometime in the new year.
In seeking to achieve its investment objective, the Fund will invest in senior secured loans, high yield corporate bonds and investment grade-rated collateralized loan obligations.
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Collateralized debt obligations are securities backed by various assets, such as bonds and loans.
Tilton has built a formidable fortune using collateralized loan obligations (CLOs) to finance the purchase of distressed middle market loans from bank portfolios.
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The original idea was to sell both loans in pieces to investors such as hedge funds, other banks and collateralized loan obligations, special funds set up to invest in loan deals.
"CDO" is a common term for collateralized debt obligation, an investment-grade security backed by a pool of bonds, loans and other assets.
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