Definition
An asset pledged to secure a loan.
Why it’s relevant today
Asset-backed lending expands when lenders become more cautious.
Why it matters
Collateral lowers lender risk but puts the pledged asset at risk.
An asset pledged to secure a loan.
Asset-backed lending expands when lenders become more cautious.
Collateral lowers lender risk but puts the pledged asset at risk.
Discussion
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