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General collateral
A section of the repurchase agreement market on which a cash borrower can provide as collateral any one of the equivalent securities included in a predetermined basket.
(1) Transactions carried out on this section of the market are called general collateral transactions.
(2) The purpose of the transaction is to lend cash against collateral of equivalent securities (most often government securities), which means that the specifications of the securities are not that important.
Synonyms and variations
- General collateral transaction