Rehypothecate

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Re`hy`poth´e`cate


v. t.1.(Law) To hypothecate again.
References in periodicals archive ?
that 92.7% of all large dealers report rehypothecating collateral).
By rehypothecating the collateral that secures dealer banks' loans to customers, the dealer bank can provide to customers lower-cost financing, or increase its own profit margins.
The banks also use non-cash collateral (e.g., securities pledged) on mark-to-market gains as collateral for themselves by rehypothecating (collateralizing the same collateral by multiple parties multiple times).