Collateral

assets that are pledged as security for payment of debt

Similar financial terms

Collateral trust bonds
A bond in which the issuer (often a holding company) grants investors a lien on stocks, notes, bonds, or other financial asset as security.

Collateralized mortgage obligation (CMO)
A security backed by a pool of pass-throughs , structured so that there are several classes of bondholders with varying maturities, called tranches. The principal payments from the underlying pool of pass-through securities are used to retire the bonds on a priority basis as specified in the prospectus.

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Sweep account

Account in which the bank takes all of the excess available funds at the close of each business day and invests them for the firm.


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