Equivalent

See also fungible - when you you have been given something, and when it comes to return it, you want to hand over something that isn’t exactly the something that you were given. But is just as good. In the case of dematerialised securities held in a clearing system (in other words all transferable securities) this is a rather arid ontological distrinction, but it is one must firmly in the front of one’s mind when considering fundamental tools of our trade — close-out netting, stock lending, rehypothecation (anything that involves a title transfer collateral arrangement really) — lest the whole intellectual superstructure of modern credit risk mitigation should collapse before your eyes.

See also

• “Heavier than air flight is impossible”. I mean, how is this 580 tonne aeroplane, which I am sitting in thirty thousand feet in the air, not falling out of the sky (and onto Chicken Licken’s head)?
• Title transfer collateral arrangement
• Pledge
• Fungible