Blog Archive

March 08, 2012

The Economist | Collateral: Safety first

The Economist
Collateral
Innovative ways of making lenders feel more secure

PUT TOGETHER ALL these aspects of financial innovation—experimentation, standardisation, infrastructure gaps and the illusion of safety—and one area of the post-crisis financial landscape flashes red as a potential source of problems: collateralisation, or giving a lender an asset as security in case a borrower defaults.

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