Definitions
from The Century Dictionary.
- noun The pledging of property of any kind as security for a loan by one with whom it has already been pledged as security for money he has loaned.
from Wiktionary, Creative Commons Attribution/Share-Alike License.
- noun finance The pledge of
hypothecated client-ownedsecurities in a margin account to secure a bankloan ; usually used formortgages .
Etymologies
from Wiktionary, Creative Commons Attribution/Share-Alike License
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Examples
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Some lawyers have theorized that MF Global might have used customer funds as collateral to back its own trades, a process called "rehypothecation."
Are Brokerage Accounts Safe? Joe Light 2011
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Because of this so-called rehypothecation agreement, Olivant couldn't locate the UBS stock when Lehman filed for bankruptcy in September or vote the shares at a UBS shareholder meeting in October.
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In return for lending money to hedge funds and on other financial products including derivatives, banks have been allowed to use client assets as collateral for their own loans or other leveraged deals, in a process known as "rehypothecation".
Telegraph.co.uk: news business sport the Daily Telegraph newspaper Sunday Telegraph 2009
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In return for lending money to hedge funds and on other financial products including derivatives, banks have been allowed to use client assets as collateral for their own loans or other leveraged deals, in a process known as "rehypothecation".
Telegraph.co.uk: news business sport the Daily Telegraph newspaper Sunday Telegraph 2009
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In return for lending money to hedge funds and on other financial products including derivatives, banks have been allowed to use client assets as collateral for their own loans or other leveraged deals, in a process known as "rehypothecation".
Telegraph.co.uk: news business sport the Daily Telegraph newspaper Sunday Telegraph 2009
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"Funds have found that assets such as equities whose recovery from the prime brokerage division should have been straightforward are in doubt because of" rehypothecation ".
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"Every agreement I've seen permits rehypothecation."
Are Brokerage Accounts Safe? Joe Light 2011
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When breached, the broker's rehypothecation rights are reduced.
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This has raised concerns about the level of rehypothecation at other brokerage houses.
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At issue is rehypothecation, a common practice where a broker appropriates a client's assets, posted with the broker as collateral, in exchange for offering the client easier credit terms.
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