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[[Collateral]], as a abstract concept, is securities and cash a counterparty puts up as [[credit risk mitigation]] under a [[title transfer collateral arrangement]] or a [[pledged collateral arrangement]] <br /> | [[Collateral]], as a abstract concept, is securities and cash a counterparty puts up as [[credit risk mitigation]] under a [[title transfer collateral arrangement]] or a [[pledged collateral arrangement]]. <br /> | ||
A [[collateral contract]] — an even more abstract concept — is a binding agreement which is collateral to — in other words it supports or gives a person a right to enter into a {{tag|contract}}. For example, certain forms of [[option]] — swaptions for example — are [[collateral contract]]s. | A [[collateral contract]] — an even more abstract concept — is a binding agreement which is collateral to — in other words it supports or gives a person a right to enter into a {{tag|contract}}. For example, certain forms of [[option]] — swaptions for example — are [[collateral contract]]s. |