Collateral
- Japanese
- 担保
- Last reviewed
- September 26, 2026
This is a draft, shown for review before publication.
Collateral is cash or bonds exchanged in derivatives and other transactions to cover losses if the other party defaults. In OTC derivatives, the party for which the trade has a positive market value receives collateral from the other party and pays interest on the cash collateral it receives.
Related terms
Explained in detail
Pages that use this term
- Inflation Caps and Floors
- Insurance-Linked Securities and Cat Bonds
- Longevity Swaps
- Overview of XVA
- FVA and MVA
- What Is Counterparty Credit Risk?
- Exposure Measures: CE, PFE, EE/EPE and EAD
- Exposure Profiles by Product
- Risk Reduction through Netting and Collateral
- Credit Limit Management
- Overview of the Regulatory Treatment of Counterparty Risk
- Counterparty Risk and XVA
- Funding Variation and Initial Margin
- Handling Margin Calls
- Derivatives in LCR and NSFR
- Operational Risk in Derivatives
- Booking Errors and Confirmation Mismatches
- KYC and Credit Review
- Front, Middle and Back Office Roles
- Collateral Operations
- Settlement
- Front-to-Back System Architecture
- End-of-Day Batch Processing
- The ISDA Common Domain Model (CDM)
- Choosing the Booking Entity
- Disclosures in the Notes
- The ISDA Master Agreement and Schedule
- Events of Default and Termination Events
- Japan's Close-Out Netting Act
- EMIR
- The Standardized Approach for Counterparty Credit Risk (SA-CCR)
- The Collapse of LTCM
- The Metallgesellschaft Loss (1993)
- ESG-Linked Derivatives
- Digitalization: CDM and Tokenization