82,247
edits
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
Line 1: | Line 1: | ||
{{a|glossary|}}'' | {{a|glossary|}}''Warning: metaphysical area approaching. Approach stacked turtles with care.'' | ||
AKA [[fungible]]. When you you have been given something — [[credit support]], for very good example — which at some point you’ll have to give back. Now, when it comes to return it, dilemma. You’ve been mucking around with it. Hey — you got it by [[title transfer]], so it was yours to muck around with wasn't it? Or, hey, ok so they [[pledge]]d it to you, but you had you know, a right of [[rehypothecation]], so you were allowed to muck around with it.<ref>Or, just as commonly and more innocuously, you held it in a [[dematerialised]] [[omnibus]] [[custody account]], with fungible assets owned by other customers, and never did ''anything with it, but you still can’t tell whose bit is whose. | |||
In any case, you want to hand over something that is ''identical'' to, but isn’t exactly ''the'' something that you were given. But it is ''exactly'' the same. | |||
Seeing as, in the case of [[dematerialised securities]] held in a [[clearing system]] (in other words ''all'' [[Transferable security|transferable securities]]) this is a rather arid ontological distinction at the best of times, 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. | |||
{{seealso}} | {{seealso}} | ||
*[[Fungible]] | |||
*{{gmsla}}: {{gmslaprov|Equivalent}}''<br> | |||
*{{gmra}}: {{gmraprov|Equivalent}}''<br> | |||
*“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)? | *“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]] | *[[Title transfer collateral arrangement]] |