Pledged collateral arrangement

A word about credit risk mitigation
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A collateral arrangement which involved the pledge of or grant of security over collateral in favour of the creditor, as opposed to outright title transfer of collateral to the creditor. Sometimes the creditor may be entitled to rehypothecate pledged collateral, though that is a silly concept, which probably has the effect of converting the pledge arrangement into a title transfer collateral arrangement.

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